Pellegrini signs new two-year deal with City

Manuel Pellegrini. Credit: Press Association.

Manchester City have handed Manuel Pellegrini a new two-year contract on the eve of a season many expected to be the Chilean's last with the club.

Pellegrini, 61, was heading into the last year of his original three-year agreement, with speculation rife that City were planning to replace him with Bayern Munich coach Pep Guardiola next summer.

But in a show of support for the man who brought the Premier League title to the Etihad Stadium in 2014, City have extended his contract for a further 12 months while also giving new terms to his backroom staff.