The former Manchester City boss is the latest high-profile manager to move to China and has joined fifth-placed side Hebei China Fortune.
The Chilean will now work with former Arsenal forward Gervinho, former Chelsea youngster Gael Kakuta and ex-PSG and Napoli man Ezequiel Lavezzi.
Manuel Pellegrini spent three years at Manchester City, winning one Premier League title and two League Cups. He also took the club to their first-ever Champions League semi-final.