All the latest summer transfer news from Anfield...
Balotelli, 24, joined the Reds as a replacement for Luis Suarez last summer, and was expected to become Liverpool's next top striker after a decent spell with AC Milan.
However, the controversial forward scored just four goals in 28 games for Liverpool, and after Brendan Rodgers snapped up Danny Ings, Roberto Firmino and Christian Benteke, it seems that Balotelli's future lies away from Anfield.
The Mirror now report that Italian side Lazio are willing to offer a £1.5m loan deal with a view to a £12.5m permanent move in a year's time.
The same report also states that the future of Liverpool left back Alberto Moreno is up in the air, with new signing Joe Gomez likely to start at left back against Stoke City this weekend.
Moreno, 23, joined the Reds from Sevilla last summer, but endured an up-and-down debut season on Merseyside, and the report from The Mirror suggests that Liverpool could be open to selling the Spaniard already.
Elsewhere, Liverpool have confirmed on their official website that winger Sheyi Ojo has not only signed a new long-term contract to stay at Anfield, but has also signed for Championship side Wolverhampton Wanderers on a season-long loan deal.
The 18-year-old, who spend time on loan with Wigan Athletic last season, heads to Molineux with the intention of playing first-team football under Kenny Jackett, who saw top winger Bakary Sako leave the club on a free transfer earlier this summer.
Finally, the Liverpool Echo report that Liverpool are not interested in signing Barcelona winger Adama Traore, despite reports from Spanish newspaper Sport suggesting that the 19-year-old was travelling to Merseyside for a medical with the Reds.