The reigning champions have won just one of their last three matches, and sit third in the EPL standings, eight points adrift of early pace-setters Chelsea after 11 matches.
Yet the Chilean coach insists there is still a long way to go in the season, and feels it is too early to write off his side’s chances.
"Now is not the moment to analyse what has happened in the season," Pellegrini told Sky Sports News.
"There are a lot of games to play in the Premier League and Champions League.
"We have 27 more games to play and there are a lot of points [to be contested] so we will see at the end who will be the best team this year."
After leading the Citizens to the Premier League title in his first season in charge at the Etihad, Pellegrini was inducted into the League Managers Association's Hall of Fame, and was delighted to have been awarded such an accolade.
"It's a very important honour, the Hall of Fame, for managers who have made an important achievement in English football," the 61-year-old said.
"So it is an honour to be with them."
Manchester City face fifth-placed Swansea City in their next EPL encounter on Saturday.