The Chilean was not prepared to discuss the move at a press conference on Friday, insisting that he would wait until a deal had been completed, but indicated that the Spaniard's loan back to his homeland in the summer had made the acquisition of a forward a priority.
"I will answer this question when I know more about that because I don't talk about rumours," Pellegrini said.
"We are going to replace Alvaro Negredo because it was the decision that we took in the moment we sold him.
"We decided to see in December if we needed another striker [and we did] so we are going to find which is the best player to bring in."
While Bony looks set to arrive at City, James Milner has been linked with a move away from the Premier League champions, with his contract due to expire at the end of the season.
Thegoalmac can reveal that understands that Liverpool head the queue to sign the England international if he is available but Pellegrini remains hopeful that a new deal will be agreed.
"For the moment there is no news," he added. "I think James wants to stay and we want James here so I hope he will sign [a new deal]."
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