The Italy international moved to Liverpool from Milan in the summer of 2014, but he could now be set to return to the Serie A outfit.
Balotelli struggled to make any impact at Anfield in the recently concluded 2014-15 season, scoring just one goal in 16 Premier League appearances.
The former Manchester City striker created just seven chances, had a pass accuracy of 70% and a shot accuracy of 56%, and won eight headers, 11 dribbles and 11 tackles.
The Italian striker, who scored 30 goals in 54 games in his first spell at Milan, does not seem to have a future at Liverpool.
Balotelli had injury problems at Anfield, but he was severely out of form for almost all of the 2014-15 season.