Manchester City have confirmed the appointment of Manuel Pellegrini as the club's new manager on a three-year contract.

The Chilean has been widely expected to take the reins at the Etihad Stadium following Roberto Mancini's dismissal after the North-West outfit's FA Cup final defeat to Wigan Athletic.

Reports emerged this morning claiming that Pellegrini's arrival was delayed due to compensation wranglings with his former club Malaga, who have encountered recent financial issues.

While the club have made no comment regarding any compensation agreements, Pellegrini has insisted that he wants to make a "significant contribution" to the former Premier League champions.

"I am delighted to accept this hugely exciting opportunity," Pellegrini told the club's official website. "The club has a clear vision for success both on and off the pitch and I am committed to making a significant contribution.

"Everything is in place for Manchester City to continue to be successful and I am excited to be able to work with such a talented squad, the executive team and the board to deliver for fans who are renowned for their steadfast support."

Chairman Khaldoon Al Mubarak added: "Manuel is a hugely experienced and successful manager with a proven track record."

Chief Executive Officer Ferran Soriano said: "Manuel is a very experienced coach with a recognised ability to get the most out of his players and build cohesive teams."

The 59-year-old will have the task of improving on last season's efforts, which left the North-West outfit 11 points adrift of league champions Manchester United, who will also begin the 2013-14 campaign with new manager David Moyes.

City have also brought in Jesus Navas and Fernandinho as the club's first two signings of the summer.