The Argentina international has been widely tipped to move to Italy following months of talks with the Premier League leaders. However, it is believed that an agreement hasn't been reached, according to Sky Sports News.
The reason behind the breakdown of negotiations is unknown, but it has been confirmed that Milan forward Pato has rejected a proposed move to Paris Saint-Germain, which could end Tevez's chances of moving to the San Siro.
It has been well documented that the North West club are only willing to sell the 27-year-old, while Milan have preferred a loan switch with an option to buy the striker.
The latest twist in the saga throws Tevez's future in doubt, with the possibility that this was the Serie A side's last-ditch attempt to sign the frontman.