The Chilean has earned this recognition after an incredible month which saw the defending champions drop just two points.
Pellegrini’s men took 16 points from a possible 18 as the 61-year old masterminded wins over Sunderland, Everton, Crystal Palace, Leicester City and West Brom to ramp up the pressure on Chelsea at the top of the table.
The only blot on an otherwise flawless record was the 2-2 draw with Burnley at the Etihad Stadium on 28 December.
City scored 14 goals in the Premier League over the course of their six games, conceding just four and all, for the most part, without a host of key players.
This stunning form cut a one-time eight point lead for Chelsea down to three as the Premier League reached its halfway stage at the turn of the year.
The champions also qualified for the last 16 of the UEFA Champions League for the second time in December, courtesy of the victory over AS Roma at the Stadio Olimpico.
Manuel has now won the league’s Manager of the Month award on three occasions.
He last claimed the accolade in January 2014 when he received it for the second month in a row as in December 2013, Pellegrini also won the award with another unbeaten month.
QPR striker Charlie Austin won the December Player of the Month award.
Everyone at the Club would like to congratulate Manuel and the players on this fantastic achievement.