Rodwell has failed to make an impression at City in two injury-hit seasons since arriving from Everton in a £12million deal, but Alan Pardew has long been an admirer of the 23-year-old.
Pardew tested the water last summer asking if he was available, but then (like now), the player still has a future in Manchester.
Rodwell has been linked with an emergency loan switch to Wigan to cover for injuries, and it was thought Pardew would try and take him to St James' Park on a season long loan deal in the summer.
He is a risk, no doubt about it, with injuries keeping his appearances down to a minimum.
A loan deal would see if he could stay injury free.
Pellegrini said: "No, Jack will continue. Unfortunately for him he has had a lot of injuries during the year but he will continue now here."