“Manchester City is a fantastic opportunity for me to continue to train and play at the top level”
The 36-year-old also believes he can now extend his England career, as revealed by Starsport on Tuesday.
Lampard will hold talks with boss England Roy Hodgson in the next two weeks, having previously hinted he was ready to retire from international football following the World Cup in Brazil.
The veteran midfielder won what most people thought would be the last of his 106 caps in England’s goalless draw with Costa Rica.
But he is now considering carrying on at the highest level and making himself available for the start of the Euro 2016 qualifying campaign.
It is understood Hodgson is keen for Lampard to continue and believes his experience will be more valuable than ever in the wake of captain Steven Gerrard’s decision to retire.
England’s qualification campaign starts next month with a trip to Switzerland and Hodgson would like Lampard to be involved in what could prove to be the hardest game of Group E.
Meanwhile, new club boss Pellegrini is delighted to have landed Lampard, who is available for Champions League games before Christmas.
He could still face Chelsea at his old Stamford Bridge stomping ground on January 31, but it is understood City would be happy to release him early if he feels awkward about playing his former club.
Pellegrini said: ”Frank is a world class midfielder and this is an opportunity which works perfectly for everyone, the player, Manchester City and New York City.”
”I’m looking forward to working with him and integrating him into our squad.
”New York have made a fantastic signing by recruiting Frank, and I’m really pleased that we’ll be able to have him with us for the first half of our season and help prepare him for his new challenge.”