Manuel Pellegrini has announced that he will leave Manchester City at the end of the season.

The Chilean told reporters of his decision at the end of a routine press conference ahead of City's Premier League trip to Sunderland on Tuesday.

"Before we finish, I tell you that I talked with the club and I will finish my contract in the original date, in June," he said. "We could extend the contract by one year more, but we have a clause that one of us - me - can not extend that contract. So I finish here on the original date, the 30th of June.

"They are not doing nothing behind [my back], I knew about this one month ago. But I don't think it's good to have these rumours and speculation about things. I'd prefer to finish [the speculation] today, that's why I told the press, I told the players, and I spoke with the club two weeks ago that I would do it."

During his two-and-a-half seasons with City to date, Pellegrini has won the Premier League title and the League Cup, and in the current season, his side remain in contention for all four trophies.

Moments after Pellegrini announced his decision, City issued a statement confirming Pep Guardiola as their new manager from next season.