The club's chief executive David Gill had been in talks with Tevez's advisor Kia Joorabchian, with the aim of keeping the popular player.United had agreed to pay the "option price" of £25.5m and offered the South American a five-year contract.
It would have made him one of the highest paid players at the club.
But despite this, Tevez has decided to leave the side, in a move that the Premier League champions called "disappointing".A United statement said: "His advisors informed the club that, despite the success he has enjoyed during one of the club's most successful periods, he does not wish to continue playing for Manchester United.The club would like to thank Carlos for his services over the last two seasons and wishes him good luck for the future."
The news will be greeted with dismay by many United fans.
They have warmed to Tevez's all-action style during a two-year 'loan' spell that has included successive Premier League titles and the Champions League in 2008.
They had hoped some of the £80m set to be pocketed from Real Madrid for the sale of Cristiano Ronaldo would be used to keep Tevez.
Earlier this season, Tevez declared he was deeply unhappy at a perceived lack of match action - even though he made more appearances than either Wayne Rooney or Dimitar Berbatov.
The Argentinian will not be short of offers from other clubs.
Manchester City are said to be the favourites to confirm Tevez's capture, having made Joorabchian an offer thought to be well in excess of United's.
source: news.sky.com
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