Tevez talks over move to Milan hit a new hitch

The Internazionale president, Massimo Moratti, signalled defeat in his club’s bid to sign Tevez (Getty Images)

Carlos Tevez is still hopeful that his move to Milan can be resurrected after Manchester City's insistence yesterday that the Italian club pay a transfer fee in excess of €25m (£20.9m) led to the collapse of the latest round of negotiations.

The dispiriting saga of Tevez's rift with City, which began with his infamous refusal to come on as a substitute in the Chamspions League against Bayern Munich on 27 September and has continued with the lengthy disciplinary process, was close to an end yesterday during meetings between the two clubs in London.

Earlier in the day the Internazionale president, Massimo Moratti, had signalled defeat in his club's attempt to sign Tevez and said that he believed the Argentine was on his way to Milan. However, Milan were unable to meet City's valuation on the player and the club's hard-line stance has not wavered at all: any prospective new club for Tevez must agree a permanent deal and they must meet City's valuation.

There is an unwillingness on City's part to be specific in public about the size of fee they want from Milan, but their demand proved the stumbling block between the two parties. It is generally believed that Tevez and his adviser Kia Joorabchian have come to agreement on the player's personal terms some time ago and Tevez has been pictured with the Milan chief executive, Adriano Galliani. City's negotiations yesterday were led by the temporary chief executive, John MacBeath, and football executive, Brian Marwood. The deal appeared to be funded, on Milan's side, by the sale of the Brazilian striker Alexandre Pato to Paris St-Germain, although it emerged the Pato deal had collapsed.

However, it was clear last night that Milan have not given up on Tevez and that they believe it will be possible to resurrect a deal to sign him later in the transfer window. If that is not possible, the player, who has spent much of the time since his exclusion from Roberto Mancini's squad in Buenos Aires, will remain registered to City. Tevez is under contract to City until 2014.

City are looking at options to sign a new centre-back this week to help to cover the absence of Vincent Kompany through suspension and Kolo Touré, who is playing for the Ivory Coast at the African Cup of Nations.