Manchester City have halved Carlos Tevez's fine for misconduct to two weeks' wages following intervention from the Professional Footballers' Association.
The players' union refused to sanction City's four-week fine - thought to be around £800,000 - after backing Tevez's claims that he did not refuse to play against Bayern Munich last month.
The union must ratify the decision of any club to impose a fine of more than two weeks' wages.
Yet while accepting the PFA decision, which cannot be contested, City have accused the union of a conflict of interests because Tevez was represented at his disciplinary hearing by their chief executive Gordon Taylor.
A City statement read: "The club acknowledges that the players' union is the sole organisation empowered with granting the ability for clubs to levy fines greater than the two weeks provided for in player contracts.
"However, Manchester City is disappointed by the apparent PFA conflict of interest evident in this process.
"Carlos Tevez has been personally represented throughout by the PFA chief executive, on whose considerations the club has been informed that the PFA has made its decision.
"Manchester City has been in constant dialogue with the PFA since September 28.
"Today's PFA decision is a departure from the club's understanding of that dialogue.
"Without recourse to the PFA decision available, the maximum two-week fine provided for in standard player contracts will now be applied in relation to the misconduct of Carlos Tevez."
Press Association Sport understands, however, that this latest development will not prevent City from continuing to take a hard line over the matter.
The club remain in no doubt that Tevez refused to play at the Allianz Arena - one of five breaches of contract - and will not back down if, as expected, the Argentinian appeals.
Yet Tevez has contended throughout that he only refused to warm up and the public support of the PFA for his stance is understood to have been warmly welcomed.
The PFA's statement read: "Gordon Taylor attended the hearing with Carlos Tevez on October 21 and was privy to all the evidence presented to the hearing and Carlos' response.
"The PFA's opinion, based on all the evidence presented, is that Carlos Tevez never refused to play for the club.
"This is accepted by the club in that the charge against Carlos made at the hearing was not one of refusing to play.
"As such the PFA considers that there is no justification for a fine other than up to the prescribed sanction of two weeks' wages agreed by the FA, the Premier League and PFA.
"The PFA has informed the Manchester City Football Club accordingly and Carlos will continue to be supported by the PFA in this regard."
The PFA's statement supports his belief that City's judgement - published on their website on Tuesday - bears no resemblance to reasons he was given for being guilty of misconduct.
Taylor said: "If he had refused to play that would have been the charge and that would be gross misconduct.
"The charge was momentarily refusing to resume warming up. He never refused to play. He was desperate to play.
"They are trying to portray he refused to play, which is serious and why he was vilified.
"No evidence that they presented suggested that.
"If the evidence was strong and irrefutable, that's gross misconduct, as serious as it gets and could be a termination of contract.
"That's not the case. The evidence doesn't suggest that and that's why the charge was not of gross misconduct."
Tevez has until November 8 to formally announce whether he intends to appeal.
Should he do so, a hearing will be scheduled with City's board of directors. If another ruling goes against him he can appeal again to the Premier League.
If this process is explored in full the saga could run on into December.
It is also understood Tevez is considering suing manager Roberto Mancini for defamation of character over his immediate post-match comments accusing him of refusing to play.
Tevez is theoretically eligible for selection amid this furore but in practice he is likely to remain an isolated figure.
The former West Ham and Manchester United player has been training alone since returning from a suspension while the initial investigation into the affair was conducted a fortnight ago.
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