Although he has a number of top quality central options, the Chilean is keen to bolster his squad ahead of next season.
Tiote is seen as one of his top targets, with the Ivorian having been one of the Magpies’ top performers for some time.
The 27-year-old has been linked with the likes of Arsenal and Manchester United since joining Newcastle in 2010 from FC Twente, with his rugged and energetic displays having earned him much praise.
Pellegrini is thought to have been particularly impressed by Tiote this season, with his performance against City – a game the Sky Blues won 2-0 – a standout showing.
The Etihad Stadium outfit are confident that they can lure him away from Tyneside, with the prospect of Champions League football and a sustained title challenge likely to tempt the midfield general.
As well as Tiote, City are looking at Fernando of Porto and Victor Wanyama of Southampton.
Pellegrini almost tied up a move for the Brazilian in January, while Saint’s midfield enforcer has been impressive in his first season in English football.