Manuel Pellegrini, Manchester City Agree New Contract: Latest Details, Reaction

Manchester City manager Manuel Pellegrini has signed a one-year contract extension at the Etihad Stadium, tying him to the 2014 Premier League champions until the end of the 2016-17 season.

The club released a statement via their official website on Friday, with the Chilean tactician stating his excitement at remaining at the Citizens' helm for another two campaigns:

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I am proud to manage Manchester City FC and am therefore very pleased to have agreed this contract. I have a very good quality group of players and a great team of people to work with on and off the field and at all levels of the Club. I am focussed on the coming season and confident that my team and I will respond to the constant support shown to us by everyone including of course our fantastic fans.

"

Manchester City failed to claim a trophy last season and finished as runners-up to Chelsea in their race to defend the Premier League crown, leading to speculation Pellegrini could be axed from his position, per ESPN FC.

BeIN Sports (via Metro's Will Giles) had previously reported Bayern Munich boss Pep Guardiola is already set to take over at the Etihad next year after falling short of expectations in Bavaria.

The English giants have chosen to place renewed faith in the 61-year-old prior to Monday's Premier League opener against West Bromwich Albion. Bleacher Report's Graham Ruthven believes there's more to the announcement:

Pellegrini won the Premier League and League Cup in his first season at the Manchester City helm, but a trophy-less 2014-15 season has left some doubting his ability.

Friday's announcement would suggest the English giants are settled under the guidance of their current chief for the time being, but it may be unwise for Pellegrini to get too comfortable in the role.