Ligue 1 - Leonardo: PSG's Tevez talks over
French newspaper L'Equipe reported that negotiations have broken down with the Manchester City striker.
Tevez has been linked with several clubs across Europe, with the two Milan clubs now thought to be best-placed to win his signature.
"We have stopped the talks," Leonardo said.
"Today the market is not moving much. There was an opportunity, we've studied it, made a good offer but we've not succeeded in reaching an agreement.
"We're not going to make an overblown bid. So we stop, and it's finished."
Tevez has not played a match for either City or Argentina since the end of September in a Carling Cup tie against Birmingham City. That match came a week before his now infamous refusal to come on as a substitute in the Champions League clash at Bayern Munich which has led to his club-imposed suspension.