Lee has concerns over squad morale if Tevez is welcome back into the fold.
Lee, who was a key part of the 1968 title-winning team, said: "You can't have people making trouble in the dressing room when you've got the tremendous spirit that City have now.
"That type of player — and one or two of the others he has let go — would be contrary to what you're trying to build.
"I'm sure that Patrick Vieira, who was a great player, is Mancini's eyes and ears in the dressing room. If he came back and destroyed the team spirit that they've got now, which could probably win them the Premier League, then nobody would ever forgive him."