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The Serie A side wanted to sign the 27-year-old forward during the January transfer window following his bust-up with boss Roberto Mancini.
Back in the fold: Carlos Tevez during pre-season training
However, Tevez apologised and made an unlikely return to first-team action in March, helping City claim the Premier League title.
But despite making amends with Mancini, Tevez's future is still unclear, and Italian newspaper Corriere dello Sport claims Milan have submitted a proposal to City after positive talks with the player's agent Kia Joorabchian.