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The Chilean is hot favourite to take over the vacant managerial position at Manchester City, but his current club have denied reports they have agreed to free him from his deal

Malaga have denied reports that they have agreed to let Manchester City target Manuel Pellegrini leave the club on July 1.

Goal.com understands that the former Real Madrid boss is the leading candidate to replace Roberto Mancini following the Italian's sacking on Monday.

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Spanish radio station Cadena Cope had claimed that the Chilean sat down with his current employers on Tuesday evening to agree an exit strategy, which would allow him to abandon his contract, which has two years remaining, without triggering the €4 million (£3m) buy-out clause.

But the Andalusians have denied that there is an agreement in place just yet.

"Manuel Pellegrini has not yet communicated anything to the club," Malaga said in a statement released to Goal.com. "The information published says that in the event a decision is made, there would be an agreement. Currently, there isn't any agreement.
 
"The media can say what they want, but it is not official. Not official and not real."

Pellegrini is keen to put off talk about his future until the end of the Spanish season on May 31, and has denied that he has already agreed a deal to take over at the Etihad Stadium, despite a meeting between his representative and City director of football Txiki Begiristain in April.

The 59-year-old was seconds away from leading Champions League debutants Malaga to the semi-finals this season, the same stage he reached with Villarreal in 2006.

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