Tevez held up the banner during City’s celebratory title-winning parade in Manchester today.
A City spokeswoman said: “The creation of the tasteless material is in itself reprehensible and in accepting and brandishing it, Carlos has made a significant error of judgement.
“The club wishes to express its sincerest apologies to Alex Ferguson and Manchester United Football Club for any offence or distress caused.”
Tevez said: “I got carried away in the excitement of the moment and I certainly didn’t mean any disrespect to Sir Alex Ferguson, who I admire as a man and a manager.”
