City had been hoping that Tevez would agree to extend his stay at the Etihad Stadium, with a troubled past put to one side during contract negotiations.
Tevez has, however, snubbed the offer of a new two-year contract.
He will see out his current deal, which has 18 months left to run, but admits that he will then look to head home and link up with Boca Juniors for a second time.
Tevez said: "I've got a year left on my contract at Manchester City and they want me to sign for two more seasons.
"I would prefer to return home, but it is very difficult because City won't let me leave for nothing.
"I will stay in Europe for another two years and then go back.
"Boca's president always says the door is open for me to re-join them and I am dying to pull on their shirt once more. I want to end my career with them. It is my dream and the dream of my family as well.
"But I am under contract and have to be here in England."
Source: Manchester City MAD