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Pep Guardiola has been named coach of Manchester City for the next season.
Guardiola has signed a three-year contract to take over as Manchester City manager in July, the Premier League club said on Monday.
Manuel Pellegrini will leave the job on June 30.
"Out of respect for Manuel Pellegrini and the players, the Club wishes to make its decision public to remove the unnecessary burden of speculation," City said in a statement on their website.
"Manuel, who is fully supportive of the decision to make this communication, is entirely focused on achieving his targets for the season ahead and retains the respect and commitment of all involved with the leadership of the Club."
The former Barcelona manager, who had in December announced that he would leave Bayern Munich at the end of the season.
Pelligrini in a statement said he was 'supportive' of the decision.