The Guardian is today running with some comments made by Manuel Pellegrini to Spanish radio station Al Primer Toque, quoting the former-Malaga manager as saying he and City have 'a verbal agreement' in place.
Although nothing official has come from the club (or indeed Pellegrini) to confirm the move, his comments do suggest that a deal has been agreed with it only being a matter of time before he becomes Roberto Mancini's replacement:
"I have always liked challenges and I am very excited by this project," he said. "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."
"Italy was a possibility too, so was France. The priority for me is Manchester City. City have a great team, a great squad and they have people who are very clear about where they want to go and how the club should develop," he said. "[David] Silva is the kind of player that makes the difference. We will have a squad that can play very good football. I am sure we will play attractive football."