The 20-year-old suffered an ankle injury playing in the Barclays Asia Trophy in July, and it was feared that the Serbian could miss a month of Premier League action.
But at the pre-match press conference, Pellegrini revealed the player is making good progress and will be back in training next week.
"He is not ready for the next match but next week, he will work normally with the whole squad," said the Chilean.
"I am not surprised because we saw him in the last week."
However Pellegrini will be able to select striker Sergio Aguero for Monday's home game against Newcastle, after he recovered from a knee injury sustained in the summer.
"He is fine, no problem. He has worked with us normally for the last 10 days so he is not a problem," continued City's new manager.
The ex-Malaga manager also revealed he would be willing to let winger Scott Sinclair out on loan if the Englishman wants to.
West Brom are reportedly leading the race for the £6.2 million man, whilst Liverpool and Crystal Palace have also been linked.
Pellegrini said: "Scott Sinclair is here and in the squad.
"He wants to play more and he has important players that play in the same position.
"If he wants to go on loan to play more, we will try to give him that."