Pellegrini's position has become the subject of scrutiny after an indifferent spell, which has seen City's title defence falter and left their UEFA Champions League hopes in a precarious state. There is precedent for the club to sack a title-winning manager, having done so to Roberto Mancini just two years ago, and rumours this week have already linked Pellegrini with a move to Napoli.
However, the 61-year-old said: "My future is very easy. I have contract here until June 2016, I will finish my contract here, and if I can extend my contract, I will extend my contract.
Pellegrini lifted the club after Mancini's reign unravelled in the second part of the 2012/13 campaign. He restored harmony to the dressing room after a fractious period, and over the past two years stories of disharmony have notably declined.
That changed this week, however, as reports surfaced of an alleged bust-up between captain Vincent Kompany and midfielder Fernandinho during the recent loss at Liverpool. It was claimed that Fernandinho reproached Kompany over a mistake which led a goal being conceded, and an argument ensued.
The claims were then given added weight by the fact neither player was selected for the next game at Leicester City. But the incident has been played down by the club with Fernandinho himself saying it was "just a conversation".
Pellegrini, speaking at a press conference to preview Saturday's game at Burnley, said: "No, there is not any problem in the dressing room. That happened a lot of days ago.
"It is normal that in one game that there can be a discussion between two players, but it was not important for the team. Inside the dressing room, we don't have any problems. There was a normal scene, nothing important."
Pellegrini also brushed off concerns that some details of the incident had been leaked to media. He said: "I don't worry about what newspapers want to say about different things. I manage the squad in one way. I don't have any problems with the players. There are no problems inside the dressing room so it doesn't matter what newspapers want to tell."
Pellegrini said he left Kompany out of the side to face Leicester in order to freshen up the team physically and mentally after the dispiriting result at Anfield. Fernandinho has since said he had a slight calf injury and felt unwell. Both players are in contention to return at Turf Moor along with playmaker Samir Nasri, another who was left out against Leicester.
Burnley threat, Toure future
City trail Chelsea at the top of the table by five points and have played a game more. They have little room for error and this weekend face a battling Burnley side that held them to a 2-2 draw at Eastlands in December.
Pellegrini said: "Burnley are a very good team. They always play as an offensive team and try to win, so we must work very hard."
Further speculation this week has seen two of Pellegrini's players, Yaya Toure and Stevan Jovetic, linked with Inter Milan, who are now managed by Mancini. With regards to Toure, Mancini has even been quoted suggesting he might like to try Serie A.
"I don't know how [Mancini] has so much information about the players," said Pellegrini. "Stevan Jovetic, the same as me, has a contract here and there has been so much news about Yaya from the beginning of the year. Maybe everyone would like to have Yaya in their squad, but he has a contract here, he is happy here and he will continue here."