The 36-year-old midfielder has been on loan from Major League Soccer club New York City since the start of the campaign after leaving Chelsea at the end of last season.
Pellegrini said Lampard would be available for the New Year's Day match but added that an extension of his loan deal had yet to be completed.
"He is in the squad list for tomorrow. He can play tomorrow,” Pellegrini told reporters.
"I said during December we will know what happens with the future of Frank Lampard. It is important for him to stay with us. Today we finish December. I hope today we will have news.
"When all the things about Frank are clear we can talk more about that -- but of course I want him to stay until the end of the season."
City are second in the Premier League and looking to rebound from a disappointing 2-2 home draw against Burnley on Sunday when they led by two goals before being pegged back.
The champions are unlikely to be major players in the January transfer window, according to Pellegrini, who said Financial Fair Play restrictions would curtail their spending.
"No, I don't think we will be busy," he said. "We have restrictions on money and the number of players."
(Reporting by Toby Davis; editing by Ed Osmond)
Share
