With City trailing 2-0 in the second half, manager Roberto Mancini turned to Tevez on the bench, but after the match, it was confirmed by the boss that Tevez refused to take part in the game.
The club has now taken action against the Argentina international, suspending him for two weeks.
"Manchester City can confirm that striker Carlos Tevez has been suspended until further notice for a maximum period of two weeks," read a club statement.
"The player's suspension is pending a full review into his alleged conduct during Tuesday evening's 2-0 defeat to Bayern Munich. The player will not be considered for selection or take part in training while the review is under way."
Tevez will not be available for Saturday's match with Blackburn, while an international break follows that means City won't return to action until October 15 following this weekend.