Giuseppe Riso, a FIFA agent working as an intermediary in Carlos Tevez's proposed move to AC Milan, claims no agreement has been put in place.
Reigning Serie A champions Milan have admitted to holding an interest in the want-away Manchester City striker and are in the process of trying to piece together a suitable package.
Milan's vice-president Adriano Galliani announced on Tuesday that terms had been agreed with Tevez and a proposal had been out to City.
The Rossoneri are looking to take the Argentine forward on loan with a view to a permanent deal being put in place next summer.
Riso admits that discussions regarding a transfer are ongoing, but insists it is premature to claim that an agreement has been reached.
He says there are still a number of issues to be resolved, with no financial details having been discussed by Milan and City.
"At the moment there are no further developments," Riso, who is working as a go-between for Tevez's agent Kia Joorabchian and Milan chief Galliani, told direttanews.it.
"There is no agreement with Manchester City.
"It is still in progress and there is a long way to go before it can be concluded.
"There is no news on the Argentinian player or the economic issue between the two clubs."