The Sunday Mirror says top-level talks have already taken place to discover whether they could sue Tevez for damaging his own value if they are forced to sell him on the cheap in January.
City have the paperwork from a pre-contract agreement with Brazilian club Corinthians in the summer that values Tevez at £44million.
And despite undertaking a spending speed that has redefined the transfer market in the two years since Sheikh Mansour bought the club, City are now striving to ensure that their finances adhere to the new Financial Fair Play Regulations being introduced by UEFA.
A City insider said: "Taking legal action against Tevez has been discussed as an option if we are forced to sell him well below the value that was set in the summer.
"If we feel we can prove that he has damaged his own reputation and therefore his value then it is an option for us to take given that we have to meet FFFR."