Chilean now expected to move to Etihad Stadium.
Manchester City could be close to landing their new manager, with Manuel Pellegrini confirming his exit from Malaga at the end of the season, according to the Daily Mail.
The 59-year-old has done a fine job with the Spanish club in the last few years after a harsh sacking by Real Madrid, and is also well respected in La Liga for his work with Villareal.
The Chilean’s impressive work has seen him linked with both Chelsea and Manchester City in recent months, as both teams have been looking for new managers.
Chelsea now look likely to replace departing interim manager Rafael Benitez with Jose Mourinho, making a move to City for Pellegrini looking all but certain after they sacked Roberto Mancini earlier this month.
Pellegrini will be expected to help the club win back the Premier League title next season, after Mancini performed poorly for the club this year, as they failed to mount a strong challenge against Manchester United and also suffered a shock FA Cup final defeat to underdogs Wigan.
The departing Malaga boss will look to bring star player Isco with him to the Premier League, as well as other raids on La Liga players.