Carlos Tevez withdraws Manchester City transfer request
The 26-year-old Argentine, who joined City in July 2009, said earlier this month that he wanted to leave after falling out with club officials.
But City said in a statement on Monday that Tevez has expressed his commitment to the club and will stay at Eastlands.
"Carlos and the club are keen to focus on the opportunities ahead and his contract remains unchanged," it said.
Manager Roberto Mancini added: "Carlos is a world-class player whose contribution since he joined the club has been invaluable.
"I am pleased that we are now able to focus on pure football matters and to be able to look forward to Carlos continuing to play a significant role in the club's progress."
City made Tevez the Premier League's best-paid player when he controversially moved to Eastlands from local rivals Manchester United on a five-year deal.
He made an instant impact, scoring 29 goals in his first campaign, and was made team captain by Mancini ahead of this season.
Despite scoring 10 times in 18 appearances so far this term, there had been reports of Tevez falling out with Mancini while he has also admitted to being homesick with his estranged wife and two young children living in Argentina.
His unhappiness came to a head on 12 December when he handed in a written transfer request and claimed his relations with "certain executives" at City had "broken down beyond repair".
City, in turn, criticised Tevez's long-time adviser Kia Joorabchian, describing his actions in relation to Tevez's situation as "disappointing".
Despite the conflict seemingly becoming increasingly acrimonious, Mancini expressed his hope that Tevez would stay, while City's football administrator Brian Marwood said he expected the player to see out his contract, which runs to July 2014.
It seems Tevez, who always insisted he would remain available for selection, has now resolved his issues - for the time being at least.
He is now expected to play in the Premier League home match against Everton on Monday, potentially still as captain. City could go top if they win.