Manuel Pellegrini 'has verbal agreement' with Manchester City

Malaga manager Manuel Pellegrini says he has a verbal agreement to succeed Roberto Mancini at Manchester City.

The 59-year-old Chilean has been widely expected to take over at the Etihad following Mancini's sacking this month.

Pellegrini has already announced that he will leave the Spanish side at the end of the season.

He on Wednesday: "I have a verbal agreement with them (City) and I hope it is carried out."

However, Pellegrini, who guided Malaga to the quarter-finals of the Champions League in 2012-13, said his appointment was not certain until an agreement had been signed.

He explained: "As of today, I don't have a signed contract. It is true that Manchester City have shown a lot of interest that I become their coach and I have had conversations with them.

"Until things have been signed, you cannot say everything is completely done."

The former Villarreal and Real Madrid boss said Malaga's recent financial problems had swayed his decision to leave.

Malaga are banned from competing in European competition next season because of a failure to make payments owed to players and other clubs.

However, should an appeal be upheld, they will qualify for next season's Europa League following last weekend's 3-1 win over Deportivo la Coruna, which may have been Pellegrini's final home game in charge.

City finished second in the Premier League this season, 11 points behind champions Manchester United, but qualified for the Champions League. They were also beaten in the final of the FA Cup by Wigan.