BREAKING NEWS: Pellegrini extends City deal
Manuel Pellegrini has put pen to paper on a contract extension with Manchester City, keeping him at the Etihad Stadium until June 2017.
Pellegrini's position had come under scrutiny after City relinquished their Premier League title to Chelsea last term.
A last-16 exit at the hands of Barcelona in the UEFA Champions League, coupled with a fourth-round FA Cup exit to second-tier Middlesbrough, also heaped pressure on the Chilean while Pep Guardiola's seemingly uncertain future at Bayern Munich continues to fuel speculation that he could be on his way to the Etihad.
However, Pellegrini now looks set to remain in place for another two years.
"I am proud to manage Manchester City FC and am therefore very pleased to have agreed this contract," he said.
"I have a very good quality group of players and a great team of people to work with on and off the field and at all levels of the club.
"I am focused on the coming season and confident that my team and I will respond to the constant support shown to us by everyone including of course our fantastic fans."
Having arrived as Roberto Mancini's replacement from Malaga in 2013, Pellegrini claimed the title and the League Cup in his debut season.
Having had his squad bolstered by the likes of Raheem Sterling and Fabian Delph during the current transfer window, City will now task him with securing more silverware.
Ferran Soriano, City's chief executive officer, added: "We are delighted to reach this agreement with Manuel Pellegrini who has already contributed so much to the development of Manchester City in his first two years with us and we look forward to further progress in the seasons ahead.
"This agreement allows Manuel to focus on the challenge of guiding a team capable of both fighting for domestic titles and competing for European honours."