The Argentine forward has fallen out of favour at Manchester City and is believed to be close to a January exit from the Premier League team with Milan vice-president Adriano Galliani already confirming that Tevez has agreed personal terms with Milan.
However, the Italians face stern opposition for the 27-year-old's signature from big-spending Paris Saint-Germain, with Berlusconi keen to take a dig at the Ligue 1 club.
"Carlos Tevez faces a choice between prestige and money. AC Milan is the prestige," the former Italian prime minister told reporters before the team's annual Christmas dinner.
After the meal, Galliani added to the 75-year-old's comments by stating that Milan will not enter a bidding war to secure the signing of Tevez.
"Our offer is final. If they [PSG] make a better offer, we will not counter it," the vice-president confirmed.
Berlusconi was also keen to talk about one of the side's current strikers, who has been plagued by injury and inconsistent form.
"[Alexandre] Pato is a great player but in recent times he has not been at his best. We see him a lot on the right but he should play more in the centre. In football, goals are what win it and we should serve him," he added.
The president confirmed he is also in the process of offering a new extended deal to coach Massimiliano Allegri.
"We will be looking to renew the contract of Allegri. This Milan side are designed to win all competitions," he confirmed.
Berlusconi concluded with a few words on Milan's season so far and how he would like the side to replicate Barcelona's style of play.
"I'd like to see Milan playing like Barcelona does. I taught this style of football when I was a coach of a non-professional team," Berlusconi stated.
"This year we think we'll be able to win the Scudetto again and we want to do great things also in Europe.
"We are two points behind Juventus, we are in good form and we're doing well. It's a positive season [so far].
"We are in the last 16 of the Champions League, where there is also Barcelona, who plays the style of football I like. Barca don't have more class players than us, it's just a matter of willing to play a certain style of football.
"Milan play good football, but I think we lack the willingness to practice a style of football far away from the traditional one."
Milan are in domestic action this weekend when they entertain Siena at San Siro, hoping to move to the top of the table.
How do you stay up with football when on the move? With http://m.goal.com – your best source for mobile coverage of the beautiful game.