The Manchester City boss believes that clubs should have to qualify for the top competitions on merit and uses his experiences in South America to warn against a closed shop
Talk of a new elite-level tournament, comprising the biggest club sides from around Europe, was sparked earlier this week when executives from City, United, Chelsea, Arsenal and Liverpool were seen emerging from a meeting with influential American officials.
Charlie Stillitano, of Relevant Sports, a company "promoting and growing soccer worldwide", has claimed that the talks centred around restructuring the Champions League, and that Uefa has previously shown an interest in working more closely with pre-season tournament the International Champions Cup.
Stillitano also suggested that a system without relegation, or current Premier League favourites Leicester City, is a possibility, but that is not an idea into which Pellegrini buys.
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"If you ask me, I don't like it," he told reporters. "I think it's important that every country has it's own domestic competition and that you arrive in the Champions League for the merits from the whole season.
"In South America there was something similar where they tried to join all the important clubs of every country and it was not very successful.
"In the way the Champions League is doing so far, it makes it a very good competition. All the stadia are full. If you don't have the merit to arrive in the Champions League, I don't think it's the same."
The City boss, who will leave the club at the end of this season to be replaced by Pep Guardiola, did admit, however, that such a plan would be in the interests of executives from certain clubs.
"I don't know, really. I understand there can be an interest in it from the most important clubs but I don't think it will be the best way," he said.