The former Premier League boss doesn't believe the domestic cup competitions will be good enough for his City bosses.
The Chilean boss came under increased pressure last season as his side failed to defend their Premier League title and were knocked out of the Champions League and both domestic cup competitions early on.
There have been increased rumours that those higher up at the Etihad are targeting a move for Bayern Munich boss Pep Guardiola at some point in the future, further increasing the pressure on Pellegrini.
And Hoddle says the current boss needs to win the title to keep Guardiola at bay come the end of the campaign.
“In all honesty I don’t think winning the League Cup or FA Cup would be enough for Pellegrini to stay in his job,” he wrote on Kicca.
“I think Pellegrini needs to win the Premier League and at the end of the season, or even before the end of the season, you’d imagine they’d look at how it’s going. He’s under pressure, [but] he’s got the experience and he’s certainly got a squad good enough to win the league.”
Guardiola still has challenges in Germany
The links between Guardiola and City are obviously strong, with former Barcelona chiefs Txiki Begiristain and Ferran Soriano both in positions at the Etihad.
They, as well as the City owners, are of course desperate to be successful in the Champions League, a competition they have so far failed to make their mark on with both Roberto Mancini and Manuel Pellegrini in charge.
And Hoddle believes Guardiola’s experience in Europe is what is surely attracting City, although the Spaniard has his own challenges to overcome in Germany first, making a move difficult.
“With the ambition City have they know they have a problem in the Champions League, that’s possibly why they’re going for the experience of Guardiola,” he added.
“Guardiola is the man they want and obviously the timing of it isn’t great as he’s staying at Bayern for now. It’s not going to be easy for him to go to Manchester City, he’s still got challenges in Germany.”