The long-running saga of Tevez's future had appeared set to continue until the summer following a frustrating month for City in their attempts to part with the striker.
A number of potential suitors have emerged only to apparently drop their interest at a later date, with Paris St Germain and Inter Milan switching their focus elsewhere.
AC Milan's pursuit of the Argentine also seemed to be at an end when they completed the signing over the weekend of Maxi Lopez, who had been lined up as an alternative option if Tevez did not arrive.
However, vice-president Adriano Galliani left the door open for a last-minute move on Monday as he refused to rule out the possibility of a surprise switch.
And it is now understood that Milan have re-entered talks with Tevez's representatives ahead of Tuesday's 11pm deadline.
There is still a lot of work for the Rossoneri to do to finalise his capture and it would require a change of heart from one of the clubs over the terms of a deal.
City have always maintained that they want to sell the 27-year-old, while Milan had previously been keen to sign him on loan with a view to making the arrangement permanent in the summer.
Milan may not be the only option for Tevez at this late stage, though, with ambitious Russian side Anzhi Makhachkala also still thought to be interested.