The former City boss will take over at Betis this summer and Otamendi is a prime target to improve their faltering defence.
Martin Demichelis could become Pellegrini's number two at Betis, which would strengthen their chances of getting Otamendi.
The pair are former City teammates.
Need a VPN? Or seeking to switch? Then support Tribal Football by clicking here to sign up with our official partners NordVPN. Not only will you receive the best VPN experience, but also great discounts by signing up via Tribal Football. Thanks for your support!