The Premier League leaders found their ex-skipper guilty of misconduct when he refused to warm up in Munich last month.
Tevez last night vowed to SUE Roberto Mancini for defamation.
He argues the City boss publicly accused him of refusing to play when the club have only found him guilty of not warming up.
Tevez, who will immediately lodge an appeal with the Premier League, was told there had been five breaches of contract during the Champions League tie in the Allianz Arena.
As well as the fine — four weeks' wages at £198,000 a week — he was given a two-week ban, which has already been served.
Meanwhile Mancini has been told by chairman Khaldoon al Mubarak that the Abu Dhabi owners are furious with the actions of the Argentine.
Owner Sheikh Mansour believes Tevez has disrespected them, the club, the fans and Manchester.
Mancini has also been assured it will be up to him to treat Tevez however he wants for the remaining three years of his contract.
City insist they will not be selling him on the cheap.
A spokesman said: "I can confirm there was a call between Roberto and the chairman on Tuesday.
"The club's formal position is no offer for Carlos Tevez will be considered unless it reflects his true value."
Corinthians, who tried to sign Tevez in the summer, claim they are close to agreeing a deal for him again.
President Andres Sanchez said: "I can assure you Tevez is about to sign with Corinthians, our fans can't imagine how close it is."
Tevez is likely to appeal against the club's verdict and has 14 days to do so — then he will have a month to put it before the Premier League.
Plenty to ponder: Tevez was training alone while he was suspended
The ex-skipper will appeal the club's decision to fine him four weeks wages — around £800,000 — for his conduct in Munich.
Tevez is unhappy with City boss Mancini for claiming he refused to play in the Champions League tie.
The Tevez camp say the formal charges levelled at the Argentinian do not refer to any refusal to play. And they take that as proof City accept he had not gone on strike.
The striker, 27, received a short letter at 8pm last night from City's chief operating officer Graham Wallace.
It read: "You refused to carry out an instruction given by Roberto Mancini and fitness coach Ivan Carminati to resume warming up with a view to playing. You are guilty of misconduct."
The letter contained no mention of the five breaches of contract mentioned in a club statement on City's website.
However the Premier League leaders are convinced the actions of Tevez in Munich were premeditated.
Sources at the Etihad revealed the ex-United hero had been told six days prior to Munich he would not be entitled to £6million loyalty bonuses.
His transfer requests in December and July meant those payments would not be made. That decision was ratified and confirmed to the striker on September 21. City had also agreed to sell Tevez in a £40m deal with Brazilian club Corinthians only for it to fall through.
However in agreeing to the player's wish to return to South America, they made it clear he would not be offered a new deal.
Tevez stayed but hardly featured in the opening weeks and three days before Munich, he was an unused sub in a 2-0 win over Everton.
He realised that day, backed up by comments from Mancini, he was now fourth in the pecking order of strikers.
All this leads them to believe Tevez's actions were premeditated.
That suggestion was last night dismissed by sources close to Tevez who vowed "to fight it to the earth".
City say they will not sell Tevez, due back in training today, on the cheap but his camp will challenge the idea the club will demand £40m for a player not even in the reserves.
Mancini is expected to make several changes tonight to the team that beat United with Saturday's league clash with Wolves and next week's Champions League trip to Villarreal taking priority.
On the pitch, Man City looks like they could win the EPL this season.
Off the pitch, this Tevez thing might throw them off their title challenge.
Interesting.
I actually think this Tevez thing is giving them the unity they were missing before...
Also, Mancini have come out of this stronger and better with the players now clear whose the boss after he got the backing from the owners...
I honestly belief this incident have help them rather then hurt them...
Man city would rather rot him until he 30 yrs old
no more internationals call up lia0
Maybe this was a secret plan from SAF - send Tevez to City to stir things up.
Footing the bill: Roberto Mancini (centre) has been backed by Sheik Mansour
Manchester City owner Sheik Mansour has told manager Roberto Mancini he will personally pay his legal bills if he is sued by his former captain Carlos Tevez.
City are involved in an increasingly ugly dispute with Tevez over Mancini’s claims that the 27-year-old refused to come on as a substitute in Munich in the Champions League four weeks ago.
The Barclays Premier League leaders revealed on Tuesday that they were fining Tevez four weeks’ wages — in the region of £1million — after finding him guilty of five charges in relation to the incident at the Allianz Arena.
Tevez has immediately struck back by claiming he will sue Mancini for defamation, maintaining that the Italian’s suggestion that he had refused to play was untrue and therefore slanderous.
However, it is understood that Sheik Mansour is so furious at Tevez’s conduct over recent weeks that he has told Mancini he will foot any legal bills out of his own personal fortune.
City do not privately believe that Tevez will take Mancini to court. Such a move would risk harming the South American’s reputation even further.
Outcast: Carlos Tevez was heavily fined
Yet the club are ready for anything and have told Mancini they are fully behind him. Mancini spoke with City chairman Khaldoon Al Mubarak by telephone on Tuesday night moments after City announced that their internal inquiry had found Tevez guilty.
In that telephone call Khaldoon told Mancini the sheik was determined to do whatever it took to punish the Argentina striker.
It is understood that City’s Arab owners are totally serious when they say Tevez will be banished to the sidelines for two years rather than be sold for a penny less than his £40m value when the transfer window opens in January.
City will also consider launching a damages claim against Tevez if they cannot sell him at the start of next year. They believe his actions have contributed to a severe drop in his transfer value and may yet seek compensation from the player for this through the civil courts.
It's great when you have such a boss. I can see man city really up there for a long time.
Originally posted by Rock^Star:It's great when you have such a boss. I can see man city really up there for a long time.
he has so much money in his bank account, what is legals fees to him? its like short change to him
tevez juz get owned
no matter how well he fight for the lawsuit
the owner juz paid $$ until tevez no $$
and mancini just said the win over man utd counts for little. This is a champion's mentality....sad to say haha.
tevez think he is big. now he meets his match.
Sticking point: Carlos Tevez (third right) on the bench at the Allianz Arena
Libel action: Tevez
Carlos Tevez is planning to take libel action against Sky pundit Graeme Souness in the latest fall-out from the Manchester City striker’s non-appearance in the Champions League defeat at Bayern Munich in September.
Souness was critical of Tevez’s behaviour after manager Roberto Mancini claimed that the striker had refused to come on as substitute and would never play for City again.
Tevez, who is keen to take the matter to court in what would be an unprecedented case against a TV football analyst, has received the backing of two leading media specialist QCs this week.
They feel he has a strong defamation claim against Souness after City charged the player with refusing to warm up and failing to follow instructions rather than refusing to play.
And the players’ union, the PFA, have ensured Tevez has been fined a fortnight’s wages of £400,000 rather than the four weeks City originally imposed.
Souness said on Sky Sports, with clips still on YouTube: ‘I’m in disbelief. How selfish can you get? Tevez is one bad apple. He can undo all the good work that has been done at City. He’s a disgrace to football. He epitomises what the man in the street thinks is wrong with modern football. It is totally unacceptable. He’s a football player and he is paid to play.’
Tevez has maintained throughout the saga that he never refused to come on as a substitute.
Sky would make no comment.