United had agreed a £25.5million fee for the 25-year-old and had made the former West Ham star a five-year contract offer.
“Following contact received from Carlos Tevez’s advisors last night, in advance of the deadline the club set for concluding negotiations, Manchester United announces that Carlos will not be signing a new contract with the club,” read a statement on the club’s official website.
“The club agreed to pay the option price of £25.5m and offered Carlos a five-year contract which would have made him one of its highest paid players.
“Disappointingly however, his advisors informed the club that, despite the success he has enjoyed during one of the Club’s most successful periods, he does not wish to continue playing for Manchester United.
“The club would like to thank Carlos for his services over the last two seasons and wishes him good luck for the future.”