Pellegrini denies deal done with City
Reports over the weekend claimed that City are ready to part with Mancini, although the club have yet to comment on the rumours.
Pellegrini has been lined up to replace Mancini and reports in Spain had suggested the Chilean has already accepted an offer to take charge at the Etihad Stadium.
However, speaking after Malaga's 0-0 draw with Sevilla on Sunday night, Pellegrini stated that no deal is in place and he plans to discuss his future in the next few days.
"Today, I deny I am going to be the new manager of Manchester City," Pellegrini told a press conference. "I have not signed an agreement with anyone, not with Manchester City, not with Roma, not with Napoli, not with PSG, not with any of the clubs who have been mentioned.
"Every year I have had the possibility of major teams making an offer to me and that is an honour.
"I had a date agreed with Malaga not to talk to anyone and I have no agreement with anyone.
"In the next few days I hope to clarify a bit what the future will be here in the club."
Mancini had criticised City for not stopping the speculation after seeing his team stunned by Wigan Athletic in the FA Cup final at Wembley on Saturday.
Speaking after the game, the Italian said: "You (media) continue to speak about this for six months and there has been too much in the last two weeks.
"I don't know why the club hasn't stopped this because it is not correct and I don't think it is true.
"It is rubbish this speculation. I will still be here next season. It is rubbish, but I know football and know that everything can happen.
"But if it is true, we will know in the next two weeks. If it isn't, this is stupid (speculation).
"If it is true, then I am stupid for not believing this. Maybe next Sunday, when the season is finished, we will know then."
Former Inter Milan and Lazio boss Mancini took over from Mark Hughes in December 2009, leading City to FA Cup victory in 2011 and the Premier League title a year later.