It was widely expected the 27-year-old's future would be finally resolved with confirmation of a move to the Serie A giants on Thursday.
However, a London meeting between club officials broke up with no agreement. And whilst it would be no surprise should they be resurrected before the transfer window closes, presently there are no plans to reconvene.
It provided a strange twist to a day that also included an official withdrawal from Inter Milan and Brazilian Alexandre Pato backing out of a proposed £30million deal between Milan and PSG.
While it is not yet known whether that development had a direct influence on Tevez's future, it may not be coincidental given Milan had previously baulked at City's insistence on an outright deal rather than an initial loan period as they first mooted.
This does little for Tevez though, who remains in Argentina, his career on hold having refused to return to City even though the furore and disciplinary action over his non-appearance against Bayern Munich in September has now been resolved.
Although City would prefer to see Tevez back at their Carrington training ground, they privately accept that will not happen unless the player remains a member of the club's playing staff once the transfer window closes.
Whether Inter will re-open talks remains to be seen, although president Massimo Moratti seemed fairly certain of his position when he addressed the issue on www.inter.it.
"I believe so," he said, when asked whether Tevez was bound for AC Milan. "That's football."
PSG have previously expressed an interest and certainly have the funds to do a deal.
However, Tevez has made it clear he would prefer a move to Italy, with seven-times European Cup winners Milan his club of choice.
Now though, the player and his trusted advisor Kia Joorabchian must decide whether to pursue other avenues, knowing if AC Milan do not come back to the table he may be forced back to City.
For their part, City - who denied there had been a deal in place to collapse, as has been reported in some quarters - have been left bewildered by the whole process which, as far as they can see, is fairly straightforward.
With no loan moves being entertained, a stance unlikely to change at present, the club will happily talk to any suitor willing to offer what they view as a fair market value for one of the world's best forwards.