The Chilean has signed a three-year deal with the Premier League runners-up and will take up the role from June 24.

"I am delighted to accept this hugely-exciting opportunity," Pellegrini said in a statement released by the club.
"The club has a clear vision for success both on and off the pitch and I am committed to making a significant contribution.
"Everything is in place for Manchester City to continue to be successful and I am excited to be able to work with such a talented squad, the executive team and the board to deliver for fans who are renowned for their steadfast support."
Pellegrini announced that he was leaving Malaga last month after a two-and-a-half-year spell with the Liga outfit, which followed a season in charge of Spanish giants Real Madrid.
The 59-year-old has managed in his homeland, Ecuador, Argentina and Spain, winning seven major trophies along the way, but this will be his first foray into English football.
Chairman Khaldoon Al Mubarak expressed his delight at securing Pellegrini's services.
"Manuel is a hugely experienced and successful manager with a proven track record," he said.

Chief executive Ferran Soriano added: "Manuel is a very experienced coach with a recognised ability to get the most out of his players and build cohesive teams."

 

He is bringing Argentine Ruben Cousillas with him as his assistant, while goalkeeping coach Xabier Mancisidor and fitness coach Jose Cabello are also making the switch from Malaga.
Brian Kidd, who was part of former boss Roberto Mancini's coaching staff, will remain at the club and provide assistance to Pellegrini.
"It is important to me that Brian remains part of the coaching team," Pellegrini told Manchester City's official website.
"He has a great football knowledge, knows the league, the players and will be a big part of what we try to achieve.
"We have spoken and we are all excited to work together."
Pellegrini led Malaga to a sixth-placed finish last season and it was also announced on Friday that he would be replaced at the club by Bernd Schuster, another ex-Real Madrid boss.
He will be charged with reclaiming the league title that City lost to fierce rivals Manchester United last season, as well as mounting an improved UEFA Champions League campaign after they exited this year's competition at the group stage.
Mancini's spell at the Etihad Stadium, which started in December 2009, ended with a shock 1-0 defeat to Wigan Athletic in the FA Cup final in May.