admin27-year-old back to the club where he enjoyed success from 2004-2006 and made their move after Tevez revealed he wanted to leave City for family reasons.
But City turned down the 40m Euro offer on Tuesday.
Corinthians will now need to increase their bid if they are to persuade the Eastlands outfit to sell the striker.
BBC Sport understands that City will step up their pursuit of Atletico Madrid’s Sergio Aguero once Tevez’s future has been settled after opening dialogue with the La Liga side about the Argentina striker.
City boss Roberto Mancini is an admirer of the 23-year-old but City will not move to progress any deal until Tevez’s next move has been decided to avoid a stockpile of strikers at Eastlands. Atletico are expected to demand £45m for Aguero, leaving City with the option of funding a transfer with the money brought in from the potential sale of Tevez.
City also retain a strong interest in Samir Nasri and are ready to head the list of suitors should they be given any encouragement by Arsenal that a deal can be done.
Manchester United manager Sir Alex Ferguson, who is also keen to sign Nasri, said in a Press conference in Boston that the the French midfield man had “agreed to go somewhere else” – with City suggested as his likely destination – but BBC Sport understands no deal has been agreed or is close at this stage.
City are in no mood to rush into any decision on Tevez until their asking price is met, believing they are in a powerful position to decide when any deal is done as he remains on a highly-lucrative, long-term deal.
However, the transfer window shuts in Brazil on 20 July, so there is limited time to negotiate with Corinthians.
“It is a big deal and a tough deal, because it is one of a very big nature and it might not be simple,” Tevez’s agent Kia Joorabchian told Sky Sports News.
Tevez’s contract is understood to be worth in excess of £200 000-a-week and it remains to be seen if the Brazilian club will match those lucrative terms.
Tevez has been linked with a transfer to several of Europe’s top clubs since announcing his desire to leave, including Italian side Inter Milan, who subsequently ruled out a move for the forward.
It initially seemed a fanciful prospect that Tevez would be able to move to South America, as no club was believed to have the financial clout to sign him from City.
However, it is thought the massive transfer fee, almost treble the club record of £13,7m that Corinthians paid to bring him to the Brazilian club in 2004, would be funded through sponsorship and money from TV rights.
“Tevez did very well for Corinthians in 2005 – he helped the club to the Brazilian championship – before he moved to England the following year. It would be closer to his daughters in Buenos Aires and so I think we have to say that this is a possibility,”said BBC South America football correspondent Tim Vickery.
Tevez handed in a transfer request at Eastlands in December 2010 but later withdrew it.
He struggled for form towards the end of last season but still finished level with Manchester United striker Dimitar Berbatov as leading scorer in the Premier League as City finished third.
Meanwhile, Manchester City have dismissed Arsene Wenger’s suggestion that their deal to rename Eastlands brings into question the viability of Uefa’s Financial Fair Play guidelines.
Arsenal boss Wenger said City’s multi-million pound arrangement with Etihad Airways was a “test” of the new rules.
Under the rules, clubs cannot spend more than they earn and all income from sponsorship must be at market value.
City described Wenger’s comments as “unfounded and regrettable”.
Uefa’s Financial Fair Play guidelines are designed to provide a level playing field among clubs, stipulating that they must break even over a rolling three-year period if they want to play in the Champions League or the Europa League. They will be phased in from the 2011/2012 season.
It means that clubs hoping to compete in those competitions will only be allowed to incur losses of about £39m over any three-season period.
The rules aim to measure “pure” football business, which means gate income, TV deals and sponsorship are all allowed but revenue from side interests such as hotels and property would not be taken into consideration.
Last week, City announced they would be renaming Eastlands the Etihad Stadium in a deal that will provide them with a significant new revenue stream, reportedly worth £400m.
Etihad are already involved with the club as their official shirt sponsor and Wenger questioned the viability of Uefa’s rules if such deals are allowed to go ahead.
“It raises the real question about the credibility of the financial fair play,” said Wenger, whose side are currently playing on tour in the Far East.
“They give us the message that they can get around it by doing what they want. The difficulty and the credibility of the financial fair play is at stake.
“If financial fair play is to have a chance, the sponsorship has to be at the market price. It cannot be doubled, tripled or quadrupled. If they bring the rules in they have to be respected.
“He [Uefa president Michel Platini] is very strongly determined on that. He is not stupid, he knows that some clubs will try to get around that.
“At the moment I believe they are studying, behind closed doors, how they can really strongly check it. That is his big test.”
But City categorically denied the fee they negotiated with the airline was artificially inflated.
“The financial details of the comprehensive agreement announced last week between Manchester City and Etihad Airways remain confidential and figures being speculated about are not accurate,” the City spokesman added.
“Manchester City is a pro-active member of the European Clubs Association and is working actively and with transparency with regard to financial fair play.
“In light of these facts, recent comments about the partnership by some observers are unfounded and regrettable.”
Online Reporter