There is yet to be any formal meeting between the clubs with the proposed re-signing of Kaká from Real Madrid by Milan potentially a factor in whether Balotelli moves back to Italy.
Raiola said: "There are no talks now between Balotelli and Milan." Asked if there was a possibility that a move could happen on the final day of the window, he said: "Who knows?"
Milan had been concentrating on Kaká, who won the Serie A title, the Champions League and the Ballon d'Or in 2007 in his six years at the club before joining Real for £57m in 2009.
But Adriano Galliani, the Milan vice-president, claimed that any deal for the 30-year-old was now off. He said: "The negotiations for Kaká have broken down. It's not possible to complete the deal for fiscal reasons. We had agreed on everything else but the deal broke down about an hour ago."
While Milan could yet revive their interest, it is understood that the club may now make Balotelli their prime target, with City wanting around the £24m the striker cost them when he was bought from Internazionale in the summer of 2010.
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