In this work, we consider the problem of decentralized multi-robot target tracking and obstacle avoidance in dynamic environments. Each robot executes a local motion planning algorithm which is based on model predictive control (MPC). The planner is designed as a quadratic program, subject to constraints on robot dynamics and obstacle avoidance. Repulsive potential field functions are employed to avoid obstacles. The novelty of our approach lies in embedding these non-linear potential field functions as constraints within a convex optimization framework. Our method convexifies non-convex constraints and dependencies, by replacing them as pre-computed external input forces in robot dynamics. The proposed algorithm additionally incorporates different methods to avoid field local minima problems associated with using potential field functions in planning. The motion planner does not enforce predefined trajectories or any formation geometry on the robots and is a comprehensive solution for cooperative obstacle avoidance in the context of multi-robot target tracking. We perform simulation studies in different environmental scenarios to showcase the convergence and efficacy of the proposed algorithm. Video of simulation studies: url{https://youtu.be/umkdm82Tt0M}