The Chilean has been strongly linked with the vacant post since Roberto Mancini was dismissed earlier this month following their FA Cup final defeat at the hands of Wigan.

And Pellegrini, who has already revealed that he will leave the Andalusian club at the end of the Spanish season, has now provided the strongest indication yet that he will be the man to succeed the Italian at the helm.

"I have a verbal agreement with them and I hope it is carried out," he told Spanish television station Canal Sur.
"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."

Malaga will bring their La Liga campaign to a close when they meet Barcelona on Sunday and are looking to secure a sixth-placed finish.