Balotelli is believed to have grown disillusioned with life in Italy, with the racial abuse he has suffered a major factor in his desire to head away.
A return to the English game is thought to be appealing to him, which has alerted Liverpool and Arsenal.
Both clubs are known to be looking to draft in new striking options this summer, and could be tempted to take a risk in the man dubbed ‘Mad Mario’.
During his time with City, the 23-year-old frequently made front-page headlines for his bizarre off-field behaviour.
As well as the Premier League pair, nouveau riche Ligue 1 giants Monaco are also interested.
Balotelli is set to represent the Azzurri at the World Cup, with a decision on his future expected to be made after the tournament.