Tevez looked to be getting his wish of leaving City, allowing him to go back to South America and be closer to his wife Vanesa and two young daughters.
However, with the Brazilian transfer window looming, Corinthians withdrew from the deal.
"The board of Sporting Club Corinthians hereby officially announce the impossibility of hiring the Argentine striker Carlos Tevez," said the statement on the club’s official website.
"While acknowledging the efforts of Manchester City and all involved in the negotiation, more time is needed for the transfer to be achieved, given that the window to sign players from abroad closes on Wednesday, July 20.
"We are aware of the dream our fans had of having this player at Corinthians again and we look forward to him being with us in the near future."