Manchester announced on Monday that Pep Guardiola will take over from Pellegrini as manager, on a three-year contract starting next season.
City, confirming this just after Manuel Pellegrini’s press conference, revealed that the Chilean, who signed a contract extension until 2017 last August, will be not be staying on beyond the end of the season.
Chelsea and Manchester United were touted as possible destinations for Guardiola, but the former Barcelona boss has now opted to move to the Etihad Stadium to fulfil his desire of coaching in England’s top flight.
A statement from City read: “Manchester City can confirm that in recent weeks it has commenced and finalised contractual negotiations with Pep Guardiola to become MCFC Head coach for the 16/17 EPL season onwards.
“The contract is for three years. These negotiations were a re-commencement of discussions that were curtailed in 2012.
“Out of respect for Manuel Pellegrini and the players, the Club wishes to make its decision public to remove the unnecessary burden of speculation.
“Manuel Pellegrini, who is fully supportive of the decision to make this communication is entirely focused on achieving his targets for the season ahead of retaining the respect and commitment of all involved with the leadership of the Club.”
Pellegrini has revealed that he was informed of the club’s decision a month ago and claims he will leave on the terms of the original contract he signed when he joined City in 2013.
“Before I finish, I want to tell you I have talked with the club and I will finish my contract on the original date,” said the Chilean.
“I signed for one year more, but with the clause that the club or me can choose not to use that stuff now, so I finish here on the original date, June 30, so there is not the speculation.
“The club are not doing anything behind me, I knew this one month ago, but I don’t think it’s good to have rumour or speculation about these things, so I prefer to finish today, which I why I have told the players and I have told the Press. I also spoke to the club two weeks ago and said that I would do it.”
Pellegrini may yet go down as City’s most successful manager, he won the Premier League and League Cup in his first season in charge, in 2013, and is in contention for four trophies this season
City is already the richest club in English soccer, with the strongest squad of players and arguably the best academy in the country. Now, it adds one of the world’s most decorated and admired coaches, who won 14 trophies in four seasons at Barcelona and has continued to bring in silverware at current club Bayern Munich.