Graham feels the Chilean will bring stability to City.
He told the Mirror: “I have seen what he has done and I am impressed. He seems the kind of manager who does not stand for any nonsense.
“He has also tasted life at a big club – maybe the biggest – when he was in charge at Real Madrid.
“He’ll know what is ahead. He did great work at Villarreal and Malaga.
“I never saw Roberto Mancini as a long-term appointment – City were too often on the front pages rather than the back during his time there.
“But Pellegrini will bring some stability to City.”