United were willing to pay the £25.5m to turn the striker's two-year loan move into a permanent five-year deal but Tevez has decided to move on.
"Disappointingly, his advisors informed the club that he does not wish to continue playing for Manchester United," read a United statement.
"The club thanks Carlos for his services over the last two seasons and wishes him good luck for the future."
Tevez became a fans favourite duruing his time at the Old Trafford club and helped the side win the last two Premier League titles as well as the 2008 Champions League trophy.
But he has joined Cristiano Ronaldo in exiting the club, with his final appearance being as a substitute in United's loss to Barcelona in the 209 Champions League final.
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