The Italian international previously played under Mancini at both Inter and Manchester City, and the two have always held a fractious yet unique relationship.
Rumours in the Italian press have already begun over a possible link-up following Balotelli’s poor start to life on Merseyside.
The 24-year-old moved to the Reds during the summer for a reported £16 million fee and was tasked with the difficult challenge of replacing former Kop hero Luis Suarez.
The Uruguayan netted 31 Premier League goals last season for Brendan Rodgers’s men, whereas Balotelli has yet to score a league goal since joining the club almost three months ago.
As Mancini was being unveiled as Inter’s new boss, he was asked during his first press conference on the possibility of the controversial striker making a dramatic return to the San Siro.
“Balotelli is good for Liverpool, he has an importance chance in another league and he needs to make the most of his opportunity,” Mancini responded, according to Tuttomercato.
Balotelli scored 20 Serie A goals in 59 appearances for Inter and won three consecutive league title for the club under the guidance of Mancini and Jose Mourinho.
He caused controversy by returning to Italy to play for rivals AC Milan but his time with the Rossoneri was cut short after an 18-month spell.