Manuel Pellegrini is free to leave Malaga on July 1 and to become Manchester City manager without having to pay the Spanish side a penalty clause, according to a report in the Spanish media today.

For cash-strapped Malaga, Pellegrini’s departure on July 1 means that the club won’t have to pay his hefty salary. At the same time, Pellegrini won’t have to pay his penalty clause to break his contract.

That paves the way for Manchester City to scoop Pellegrini away from Spain, to manage their club as a replacement for sacked manager Roberto Mancini.

Meanwhile, Manchester City are still interested in signing attacking-midfielder Isco from Malaga. The club would reportedly like to sign him on a four-year deal.