Speaking in Vancouver on Sunday, Blues manager Roberto Mancini claimed an agreement had been reached between the two clubs and only personal terms had still to be thrashed out with the Argentina striker.
However, Corinthians later released a statement on their own website insisting this is not the case and that City have attempted to make changes to their initial agreement.
"Regarding the news published during the early hours of today stating an agreement between Corinthians and striker Carlos Tevez, the (club) president Andres Sanchez would like to clarify to the public that Manchester City did not accept the Corinthians offer for the player," read the statement.
"The truth is that the club sent Corinthians a counter-proposal in the early hours, that due to the time difference only was noticed by the Alvinegra (white and blacks) management this morning.
"In the counter-proposal, the English club have asked for changes in the form of payment and on the value of the transfer.
"In addition, Manchester City has also insisted that Tevez would have to give up a pending amount with the English club.
"Lastly, president Andres Sanchez informs that for the time being there does not exists anything concrete for Tevez and the counter-proposal will be analysed by him and by his management."
In all likelihood, it is just a matter of time before Tevez heads back to the Brazilian club, whom he left for West Ham in 2006, triggering what has been an eventful and controversial five-year stay in the Premier League.
The 27-year-old has made no secret of his desire to leave Manchester and move somewhere more accessible to his wife Vanesa and two young daughters.
His exit will leave a massive hole given he finished last term as captain and joint Golden Boot winner, justifying his status as the Premier League's highest-paid player.
However, recently-retired midfielder Patrick Vieira is convinced the club can quickly move on.
Vieira said: "It is never easy to lose players like Carlos Tevez.
"In the last two years he has been fantastic for the football club, scoring goals.
"The club has grown that fast and Carlos has made a huge contribution to it, like all the players.
"But in football, it is not the first time a big club has lost a big player.
"I believe we can still achieve our targets and we will still have a really competitive team.
"The players will take more responsibilities on their shoulders and that will make them better players.
"Life goes on. If Carlos does leave we just have to wish him good luck and say thank you for everything he has done for the football club."
Tevez, after beginning his career at Boca Juniors, previously played for Corinthians from 2005-06 before joining West Ham and then Manchester United.
The search for Tevez's replacement at the Etihad Stadium will intensify with City heavily linked with another Argentinian - Sergio Aguero of Atletico Madrid.
City are also keen on Arsenal's Samir Nasri with manager Roberto Mancini's public expression of interest sparking a row with Gunners counterpart Arsene Wenger.
Vieira, who has worked closely with both managers, has played down the dispute.
The 35-year-old was speaking at the public unveiling of City's ambitious plans for a new youth and first-team training facility in his new role as football development executive.
The Frenchman said: "I see it from outside and I keep smiling. This happens all the time.
"It is Mancini-Wenger, the next day it is Wenger-Ferguson, then Ferguson-Mancini. This happens. It is part of the game.
"The important thing is not to disrespect anybody and I don't think anybody did disrespect anybody.
"Life keeps going. I think every club wants the best players, so it is a part of the game."
Aguero, who like Tevez was part of the Argentina squad knocked out of the Copa America at the weekend, has also been linked with Real Madrid and Juventus.
The 23-year-old is in demand after announcing that he wants to leave Atletico after five years at the club.
Aguero's representative Hernan Reguera expects the striker's future to be decided in the coming week.
"In seven days everything will be settled," Reguera was quoted as telling Argentinian sports newspaper Ole.
"He wanted to finish the Copa America to sit down and talk.
"Kun [Aguero] did many important things for Atletico; he renewed his contract a year from being a free agent, he played more than 200 games, he had two years without holidays. He is grateful to the fans and to the board.
"I have daily contact with the (Atletico) board and although initially they found it difficult to accept, there are no problems.
"This is so his sporting career can grow, it has nothing to do with money."