City edged out Liverpool in a thrilling race for top spot last season and the upcoming campaign promises to be just as exciting, with Chelsea and Arsenal strengthening their squads and Louis van Gaal trying to inject new life into Manchester United.
However, Pellegrini is aware of the challenge and has also brought a number of new signings to the Etihad Stadium in the shape of Fernando, Bacary Sagna and Willy Caballero.
He is determined to help City become champions once again, while they will also hope to challenge for European glory, having fallen to Barcelona at the last-16 stage last season after making it out of the group stage for the first time.
“We won the title last season but this year is another year,” he said, quoted by the Daily Mail. “We have new targets, we will try to make important achievements in the Champions League and to once again win the Premier League.
“So I think that what happened last year is in the past. For our team now it is important to think of the future - and the future is to continue winning titles.
“Every year in the Premier League you have five or six teams who are very strong. Maybe this year Chelsea at the moment, and Arsenal and Manchester United are bringing new players in.
“But I think that we will continue to be a very strong squad. We have also been bringing in three or four important players to improve our squad. And we will see during the year which is the better team.
“But I continue thinking we have a very strong squad and we will try to win the title again.”
Meanwhile, Pellegrini has dismissed speculation linking Stevan Jovetic with a move away from Manchester City.
Jovetic did not make much of an impact last season following his arrival from Fiorentina and reports have suggested that he could be allowed to leave this summer.
However, a long-term injury to Alvaro Negredo has left City with limited options in attack and Pellegrini is adamant that Jovetic remains a key part of his plans.
He added: "Stevan is working well with us. He is a very important player for our team.
“Maybe there are a lot of rumours about his future but Stevan will stay with us here.”