Demichelis has come in for severe criticism after his sending off in City's Champions League loss to Barcelona on Tuesday.
Manuel Pellegrini: "I think he played very well until the penalty and I think maybe it's (just) a fraction of a second (late), and he thought he arrived to the ball.
"I think he is a very important player. He is in a very good performance for the moment.
"I think Vincent Kompany and him are playing well so he is a very useful player for us."