Bersant Celina is set to sign a new deal with Manchester City.
The Mail on Sunday says talks over a new five-and-a-half year deal are already underway, with City hoping to conclude negotiations by the end of the month.
A host of clubs, Celtic included, showed firm interest in taking Celina on loan until the end of the season.
But while fellow starlet Patrick Roberts was allowed to leave for Parkhead, Pellegrini blocked all moves for Celina, believing the teenager can play a role for his side during the business end of the season.