Pellegrini has already confirmed he is leaving Malaga at the end of the season, whilst City have fired Roberto Mancini.
“I have a verbal agreement with them and hopefully that can become official,” he told Al Primer Toque.
“I have always liked challenges and I am very excited by this project. The idea is to build a project at all levels. The chance to construct an infrastructure is as important to me as simply turning up at a team that has a chance of winning things. For me, the objective is not just titles.”
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The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.
Five English clubs will compete in the last sixteen of the Champions League for the first time ever as Liverpool, Manchester United, Manchester City, Chelsea and Tottenham face some difficult away matches.