The Welshman, who faces his old club tomorrow with Stoke, reckons Pellegrini will need to do better next season to keep his Abu Dhabi bosses happy.
The Potters manager said: "He's shown progress this year. I don't think they'd qualified for the latter stages before.
"Roberto Mancini wasn't able to do it but they've done it quite comfortably. That's progress I think.
"As long as he's seen to be progressing the team and the club then he'll be fine.
"They are strong owners and demanding owners, so it's no different from anyone else in that regard. You have to get the results that the ownership require.
"They have a definite view in terms of what they expect for the investment they've made, and they will want to see the club progressing."
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