Two days after the defeat to the Latics, Mancini was axed by the City hierarchy following the team's surrender of the Premier League title to Manchester United and their failure to qualify out of their Champions League group for the second consecutive season.
Now Pellegrini, 59, has called time on his career with the Costa del Sol club and is widely expected to take over at City after citing "sporting reasons" for his exit to Spanish sports newspaper Marca (via ITV.com).
My coaching staff and I are separating from Malaga but our union with this city will be eternal. I'm going for sporting reasons.
Pellegrini has a good pedigree in the European game after moving to Villarreal in 2004. He guided the team to a fourth-place finish in La Liga in his first season in charge before leading them to the Champions League semifinals against Arsenal the following year.
Pellegrini joined Real Madrid in 2009 but left after a disappointing season with the club. He joined Malaga in June 2010 where he progressed the team to the top four in 2012.
Subsequently, he led the Costa del Sol team to the Champions League quarterfinals this season, where only two late Borussia Dortmund goals denied them a place in the last four.
Malaga have been dubbed "the Manchester City of football" (via Footballspeak.com) after the money spent by club owner Sheikh Al Thani following his takeover in June 2010.
But it's not just finances which are required to forge a team. Pellegrini is the only manager to lead two different clubs to the last eight of the Champions League in their debuts in UEFA's elite tournament.
Now it appears likely that Pellegrini will be given the opportunity to prove himself in the Premier League.