The Sunday Mirror says the FA Cup holders have decided to ditch their wantaway striker.
Tevez is primed to join Brazilian outfit Corinthians if the clubs agree a fee before Wednesday's transfer deadline in Brazil.
Tevez's exit marks a change in direction for City, who accept they can no longer keep their unhappy talisman.
City boss Roberto Mancini said: "Carlos is a fantastic player, a good guy for me. If we lose him, we lose an important player. But it is important that every player is happy to stay here or in our team. This is the most important thing."