Malaga will waive Manuel Pellegrini's buyout clause to smooth his move to Manchester City.

The Daily Mail says Malaga have agreed to waive a £3million release clause and free Pellegrini, 59, from the final two years of his contract at the end of the season.

Pellegrini is expected to earn £4.5m a year, but is unlikely to be unveiled until City return from their post-season trip to New York, where they will play Chelsea in two friendlies.

Malaga denied the reports last night, though it's understood they only want to maintain focus on European qualification and avoid distractions.