Premier League club Manchester City has lost out on a key target in the form of defender Adil Rami, who has agreed to join Italian club AC Milan.
According to Metro.co.uk, despite being keen on the player, Pellegrini has been trumped by quick-thinking Milan, who have agreed to sign the defender on-loan when the transfer window re-opens.
The deal was struck over the weekend and in the meantime, the 27-year-old has flown to Italy to begin training with his teammates to acclimatise ahead of the completion of the deal, the report said.
Rami, a 6'3" centre back, was identified by City scouts last month after he was kicked out of the Valencia squad following a row with their manager, the report added.
Arsenal and Spurs have been linked with the player, but City were in pole position to get him, until Milan pounced, according to the report.
It's thought as part of the loan deal, Milan can make the transfer permanent in the new year for 5 million pounds, the report mentioned.