Tevez, who will retain the club captaincy, had asked to leave the club on December 11 after having talked of his dissatisfaction with life as a footballer for several months.
He has repeatedly underlined the problems in his personal life - his daughters are based in Argentina - and said his relationship with "certain executives and individuals at the club" had broken down "beyond repair".
However, a statement on the club's official website on Monday read: "Manchester City can confirm to its fans that 'clear the air' talks have been held with Carlos Tevez.
"During the meeting Carlos expressed his absolute commitment to the club and formally withdrew his transfer request.
"Carlos' contract remains unchanged and both Carlos and the football club are keen to focus on the opportunities that lie ahead."
Manager Roberto Mancini added: "Carlos is a world-class player whose contribution since he joined the club has been invaluable.
"I am pleased that we are now able to focus on pure football matters and to be able to look forward to Carlos continuing to play a significant role in the club's progress."
Speaking to Sky Sports before Monday's game against Everton, Mancini said: "I am happy that we finish this and Carlo stays. It's very important for everyone."
Asked if it was a big decision to keep Tevez as captain, he replied: "No, absolutely not. It was easy."
Source: ESPNsoccernet , December 20, 2010
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