In a farcical plot-line that mirrors Wayne Rooney's recent bid to quit Manchester United, Tevez will now remain at Eastlands.
The club released a statement before Monday night's home clash with Everton, revealing that they have convinced the striker to stay.
What a joke: Carlos Tevez (right) has performed an incredible U-turn at Eastlands
Tevez was won over after a showdown meeting with chairman Khaldoon Al Mubarak and chief executive Garry Cook on Monday morning.
However, City also revealed that Tevez has not received an improved contract following negotiations.
The statement read: 'Manchester City can confirm to its fans that "clear the air" talks have been held with Carlos Tevez.
'During the meeting Carlos expressed his absolute commitment to the club and formally withdrew his transfer request. Carlos' contract remains unchanged and both Carlos and the football club are keen to focus on the opportunities that lie ahead.'
City boss Roberto Mancini added: 'Carlos is a world-class player whose contribution since he joined the Club has been invaluable.
Talks: Roberto Mancini (left) appears to have convinced Tevez to reverse his decision
'I am pleased that we are now able tofocus on pure football matters and to be able to look forward to Carloscontinuing to play a significant role in the club's progress.'
Tevez handed in a transfer request earlier this month, claiming he was homesick in Manchester with his two daughters living in his homeland Argentina.
After City had turned down the plea, they criticised the 'actions of Carlos' representative (Kia Joorabchian).'
In response, the player released a statement saying his request had not been a knee-jerk reaction to any one particular event but rather he had wanted to leave in the summer.
He added: 'My relationship with certain executives and individuals at the club has broken down and is now beyond repair.'
There was also the issue of his deteriorating relationship with Mancini, although Tevez stressed he had no 'personal issue' with Mancini.
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Explore more:People: Carlos Tevez, Wayne Rooney, Roberto Mancini Places: Manchester, Argentina