Would be a great move. Pellegrini has never disappointed in my eyes: not at Villarreal, where he remains the best manager they've ever had, not at Madrid, where he took them to a record points total, and not at Malaga, where he's fashioned a ruthless, quick-passing side that have punched above their weight while dealing with star player departures and financial irregularities.
The only question is whether the media and City fans will give him time: after all, many of them now seem to think themselves on par with Madrid, and Madrid fans certainly didn't give him long.