West Ham won 4-1 away at Watford on the final day on Sunday to eventually finish in the top half of the Premier League.
The national newspaper claims that sources close to them have said Pellegrini has no intentions of leaving as he plans to build on this campaign.
Pellegrini has been linked with a move to Spain before to Sevilla who also are also looking for a new manager.
This will be great news for all involved at West Ham. Pellegrini has started a project at the club and was given a big transfer budget to improve in the transfer window before this season. The Chilean broke West Ham’s transfer record twice in the process, bringing in both Felipe Anderson and Issa Diop. There was a report claiming that Pellegrini is ready to clear out most of his fringe players this summer instead of loaning them out to release more funds for his transfer plans. This will allow him to spend more money on strengthening his squad and make a push for European football after failing to qualify a few years ago. With a year behind him, everyone at the club will expect much more than just mid-table next season, especially if Pellegrini spends a big chunk of money once again as it would be at risk of becoming unsustainable.