Roberto Mancini, the City manager, had said earlier today that the clubs had finally agreed after Corinithians had made an improved offer when their earlier bid of £39 million (Dh233m) had been rejected for the wantaway striker.
"At the moment we have an agreement with Corinthians, but Carlos now is still a City player," Mancini told Sky TV.
However, Andres Sanchez, the Corinthians president, denied any such agreement had been reached, saying City “did not accept Corinthians’s proposal for the footballer”.
“For the moment there is nothing concrete on Tevez and the counter-proposal will be examined [by Sanchez] and the board,” the club said.
According to Sanchez, City sent Corinthians a counter-proposal in which “it asks for changes in the form of payment and the total value of the transaction. Furthermore, Manchester City insisted that Tevez renounce a sum outstanding with the English club”.
The striker wants to leave Manchester as his daughters live in South America with their mother. The Argentina forward, formerly with West Ham United, and Manchester United, led City to FA Cup glory and Champions League qualification last season.
Currently toiling from Argentina's exit from the Copa America, Tevez left Corinthians for West Ham in August 2006.
Selling Tevez to Corinthians would enable City to offload him to a club with whom they are not in direct competition, either domestically or in Europe, while also boosting the player's family arrangements with his estranged partner living in Buenos Aires. Manchester City are also looking to sign up Tevez's compatriot Sergio Aguero as an ideal replacement.
Tevez said today that "I would have no problem to go back to Corinthians," where he won the 2005 league title and became a great crowd favourite.