City had been fearing their captain would leave this summer, but hoped he would have a change of heart. However, on Monday night he confirmed their worst fears.
Currently playing for Argentina in the Copa America, Tevez, 27, spoke to City chairman Khaldoon Al Mubarak to explain his decision.
Centre of attention: Carlos Tevez with Nicolas Burdisso (left) and Gonzalo Higuain (right) during a Argentina training session
The striker stressed that he needed to live in a country where his family will be happy to join him.
Tevez, who was City's top-scorer last season as they qualified for the Champions League for the first time, issued a statement to Sportsmail on Monday night:
'It is with great regret that I have to inform Manchester City of my wish to leave the club. I would like to state that I have great respect for the club, its supporters and the owner, Sheik Mansoor, who has been nothing other than respectful to me.
Comfort zone: Tevez is currently on international duty with Argentina at the Copa America
'I hope that the people understand the difficult circumstances I have been living under the past 12 months, in regards to my family.
'Living without my children in Manchester has been incredibly challenging for me. Everything I do, I do for my daughters, Katie and Florencia. I need to be closer to them and to spend more time with them.
Family man: Tevez insists he has to be closer to his two young daughters Florencia (left) and Katie, currently living with their mother Vanesa in Buenos Aires
'I need them to be happy because my life is about them now. I need to be in a place where they can adapt.
'Being captain of Manchester City, qualifying for the Champions League, winning the FA Cup and finishing astop-scorer last season has made me very proud.
'I hope that most of the City fans will understand that I have given them my all on the pitch and that my dedication to the city cause has been 100 per cent on the pitch.
'I hope I have done my bit to help City continue their progress towards their ambition to be champions of England and to advance in the Champions League. I have no doubt that the players and management of City will achieve great success in the future.'
Tevez was keen to stress the decision is not professional, but personal. His estranged partner Vanesa, the mother of his two children, could not settle in Manchester and returned to Argentina with their daughters.
It is believed they are happy to move to a Mediterranean destination for the warmer climate and way of life.
Tevez hopes a transfer to either Italy or Spain can be agreed, although there is no current interest from either country.
He turned down the chance to speak to Juventus a month ago - it is believed the Serie A giants may come in again now his future appears clearer, although that is uncertain.
It is understood friends advised Tevez against this high-risk strategy - he has no future employment lined up - but the player is so desperate to move away he wants to force the issue.
Recently, Tevez told Sportsmail of his turmoil during a trip to Argentina for the launch of his charity to raise money for the underprivileged in Buenos Aires.
Rocky relationship: Tevez hasn't always seen eye-to-eye with City manager Roberto Mancini but the pair appeared to have put their differences behind them at the end of last season
'It is great being here but it is going to be even more difficult to go back now,' he said during an exclusive interview. 'It's great now, enjoying spending time with my family but it will be tough to go back. Being back here means I can cuddle my daughters. It's a difficult situation when I'm not here.'
City manager Roberto Mancini appeared confident Tevez would stay, when he declared at the weekend that a swap deal for Inter Milan's Samuel Eto'o had collapsed.
Mancini said: 'Yes, of course Tevez will stay, he is a fantastic player. There was talk of an exchange with Eto'o, but Inter did not want to sell.'
Candid: The Argentine striker revealed exclusively to Sportsmail last month his agony at being separated from his family
Despite a sometimes fractious relationship, Tevez and Mancini eventually proved they can work together.
The little striker was recalled to the City starting line-up on the eve of the FA Cup Final, when it was expected he would be a substitute following an injury.
Tevez led out the City team as captain and held the FA Cup aloft. He later attended a City bus tour around Manchester, even though he was expected to return home and miss the celebration.
He handed in a transfer request last season - and has been critical of certain board members in the past, accusing them of broken promises - but this time, it is believed he will not adopt an aggressive approach and has not asked for a transfer. He expects the club to understand his wishes to go.
Tell-tale signs: Tevez appeared to wave goodbye to City supporters following the final match of the season at Eastlands in May
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