Tevez returned for City in the win over Chelsea last week after having spent months AWOL in Argentina after refusing to warm up against Bayern Munich last September.
Pallister said: “The situation with Tevez has been farcical.
“He lived in Manchester, he signed for another Manchester club, and then sat there and ripped the city apart, saying he didn’t like the city, didn’t like the way of life.
“He’s embarrassed the team, the manager, the owners. I don’t think Alex Ferguson would have let him back anywhere near the place.”