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The France international's contract is set to expire at the end of the season, with rumours suggesting he has been offered a three-year deal at the Etihad Stadium.
However, Pellegrini avoided the subject on Friday, claiming he had heard "many names" mooted in the media as potential future signings.
Arsenal boss Arsene Wenger had earlier expressed confidence that Sagna would remain at the Emirates Stadium and even suggested a move from City would be "illegal".
"He has an offer, he has not come back to us yet," he said. "That (City offer) cannot be right because it's illegal.
"I'm confident he will stay but we will accept his decision.
"No matter what his decision will be, we will accept it and go on with it."
