While they are favoured by the player, Milan have angered City officials over their behaviour during negotiations.
City chief Marco Branca was in London last week for talks over a deal for the Argie.
And Corriere dello Sport says an agreement is close. City are seeking €30 million, while Branca insists they won't go higher than €27 million.
Those on City's side say they're prepared to compromise and will even help Inter by agreeing to spread the payment over a long-term period.
If they can strike terms with City, Inter chiefs are convinced they can go to Tevez and his adviser Kia Joorabchian and persuade them to break their agreement with Milan.