Manchester, United Kingdom - Manuel Pellegrini has claimed Manchester City have done nothing wrong with the loan signing of Frank Lampard despite criticism from Arsenal boss Arsene Wenger that it was ploy used to get around UEFA's Financial Fair Play rules
Lampard left Chelsea in June after his contract at Stamford Bridge expired and the following month joined Major League Soccer club New York City FC, who are City's sister club in the United States.
The 36-year-old midfielder has since moved to the Etihad Stadium on a six-month loan deal from New York, and will return to the MLS club in January ahead of the start of their season in March.
Wenger said the move was a way for City to navigate (FFP) rules, but ahead of Sunday's Community Shield against FA Cup holders Arsenal at Wembley Pellegrini insisted everything has been done above board.
"Was it done correctly? I think so. We didn't spend any money on Frank Lampard from New York City," Pellegrini said.
"He wants to continue playing and he is a good player and very important for our team.
"We didn't spend any money on him so the rules of Financial Fair Play doesn't have any relation with Lampard.
"He was a free player so I also don't understand the reaction of Chelsea fans who say he is a traitor because he is not at Chelsea.
"The problem was not that Frank Lampard didn't want to sign another contract with Chelsea, Chelsea didn't want him anymore."
Wenger's comments have added extra spice to the game at Wembley, although City are set to be without eight key players.
Pellegrini confirmed defenders Martin Demichelis, Vincent Kompany, Pablo Zabaleta and Bacary Sagna will not be involved while midfielders Fernandinho, Sergio Aguero and Lampard are all set to miss out along with injured striker Alvaro Negredo.
The Chilean admitted the match remained a significant one for his side and he would like to add the Community Shield to the Premier League and League Cup titles he has already won.
Pellegrini said: "Of course it is not a friendly match. It is an important game against an important team in Arsenal.
"Maybe both teams, Arsenal and our team, do not arrive in our best moment because both have a lot of players who have just arrived from the World Cup but I think it will be a very good game and important for both teams to win it.
"For this year, our target is exactly the same as last year. We will try to play the four competitions we must play, we try to continue in all competitions as far as we can. Exactly the same as last year.
"We continue trying to win the Premier League the FA Cup, the Capital One, the Champions League and we will see during the season what we can do. To win the Community Shield would be a good start."
Pellegrini also said there was no further progress on City's attempts to sign France centre-back Eliaquim Mangala from Porto in a proposed 32m transfer.
He added: "I always say the same answer, when things are finished we can talk about that. It doesn't matter how close it is. For the moment he is not our player."