Manchester City are holding back from handing Manuel Pellegrini a new contract.

The Daily Star Sunday says City aren't rushing to offer a contract extension to Pellegrini, 60.

The Chilean has two years remaining on his deal and is understood to be relaxed himself about the situation.

City are reluctant to put themselves in a similar situation to the one they faced when they sacked former boss Roberto Mancini - and had to hand him a £30 million pay-off.

Pellegrini was a target for Brazil after the World Cup, but immediately made it clear he wasn't interested in the job.

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