Tevez had shocked City by demanding a move earlier this month after claiming his relationship with the Premier League club's hierarchy had deteriorated beyond repair.
When City rejected the Argentine's claims in a strongly-worded statement it appeared certain the former Manchester United player would be on his way out of Eastlands.
However, Tevez met with City boss Roberto Mancini on Friday and, after also speaking to club officials, he has decided to remain with the team he joined from United in 2009.
"Manchester City can confirm to its fans that 'clear the air' talks have been held with Carlos Tevez," a statement on City's website said.
"During the meeting Carlos expressed his absolute commitment to the Club and formally withdrew his transfer request.
"Carlos's contract remains unchanged and both Carlos and the Football Club are keen to focus on the opportunities that lie ahead."
The 26-year-old Tevez scored 29 goals in his first City season and has 10 in 18 appearances this term, having been appointed captain before the season started.