Manchester City are delaying the appointment of Manuel Pellegrini over a compensation fee.

The Mirror says Pellegrini has not been paid by Malaga for two months - and that a third month without pay would entitle him to walk away for free.

That would mean deposed Premier League champs City would not have to meet the £3.2m buy-out clause that would release Pellegrini from the final year of his deal with the Spaniards.

With City already paying sacked boss Roberto Mancini £7m in compensation, the club are keen to avoid coughing up another hefty sum to secure his replacement.