MANCHESTER CITY manager Manuel Pellegrini admits he now has to deliver titles after signing a new-two year contract at the Etihad Stadium.

The Chilean was entering the final year of his previous deal but has now agreed an extension to 2017 in a move that could quell speculation linking Bayern Munich's Pep Guardiola with his position.

Guardiola, out of contract next summer, is long thought to have been a target for City having previously worked under the club's chief executive Ferran Soriano and director of football Txiki Begiristain at Barcelona.

Pellegrini, 61, won the Barclays Premier League in his first season at City in 2013 but, after last year's disappointing campaign, he accepts improvement is necessary.

Pellegrini said: "It is very important for the club to trust in our work. I am very happy here at Manchester City so if both parties are happy we can continue. The support the club gives me is important.

"But you know in this profession you need results, so it is very important for me to have a good season and get good results.

"For me a good season with a big team is that you must win a title (trophy). You cannot say it is a very good season if you win nothing."

Speculation over Pellegrini's future was rife towards the end of last season as it became apparent the club would not catch Chelsea in the Premier League and they went out of the Champions League.

It eased as City ended with six successive wins but could return if the team again perform below par. Pellegrini accepts this but insists it will not bother him.

He said: "I was used last season to the speculation. I'm not talking about Pep Guardiola. He is a manager that every team will want to manage them because he is a great manager.

"Maybe he is linked with this team more because of the relationship with Txiki and Ferran but I trust in them and I am sure if they want to bring in him, they will tell me.

"I have no problem with my relations inside the club. I know exactly how the owners think. Maybe it is better for the outside media."

Soriano believes the new contract will allow Pellegrini to concentrate on business on the field.

He said: "This agreement allows Manuel to focus on the challenge of guiding a team capable of both fighting for domestic titles and competing for European honours."

City's main business during the summer has been the signing of England's Raheem Sterling in a club record £49m deal from Liverpool.

Sterling's conduct towards the end of his time at Anfield attracted much negative criticism but Pellegrini expects the 20-year-old forward to settle quickly and provide plenty of excitement.

Asked how good Sterling can be, Pellegrini said: "Very, very good. I trust a lot in him.

"Maybe some of the media are talking about the price we paid for him, but an English player at 20 with such quality, speed and good technical ability - I think he will continue improving a lot every year.

"Playing with players like Yaya (Toure) or (David) Silva or Kun (Sergio Aguero) will help him to improve. I trust you will see Raheem scoring a lot more goals than he scored in other seasons for Liverpool."

Another new signing, midfielder Fabian Delph, will miss Monday's season-opener at West Brom with a hamstring injury while defender Gael Clichy is out with an ankle problem.