According to The Independent, the Italy international striker has been told that he has no future at Anfield.
The former Manchester City star moved to the Reds from Italian giants AC Milan in the summer of 2014.
Balotelli struggled for form and with injuries during the 2014-15 campaign, scoring just one goal and creating only seven chances in 16 Premier League appearances.
Former United defender Neville has now taken to Twitter to give his take on the speculation surrounding the 24-year-old’s future.
Liverpool are unlikely to miss Balotelli if he does leave this summer, as it is clear from last season's displays that he does not fit into manager Brendan Rodgers’s system.
Despite showing promise in the early stages of his professional career, Balotelli has proven to be a largely average striker who blows hot and cold.
If the Merseyside outfit get a decent transfer fee for the former Inter Milan man, then they should not hesitate to sell him.