Manchester City have agreed a deal with Carlos Tevez to sell him in January.

The Daily Star says Tevez was expected to challenge the £400,000 fine and two-week ban he received for refusing to warm up during September's Champions League defeat at Bayern ­Munich.

But the rebel striker has ­instead dropped his legal ­challenge against the club ­after receiving assurances that he can leave when the ­transfer window opens in January.

Tevez is hoping his surprise climbdown will stop City pricing him out of a move.

The Blues value Tevez in the £40m bracket, but will have to cut their losses and sell him for around half that to get him out of the door.