The controversial former Manchester City front-man is rumoured to be on the verge of leaving the San Siro, with the Rossoneri having grown frustrated with his off-field antics and general behaviour.
Balotelli is also angered by the racial treatment he has received in Italy, and a move away from Milan is thought to suit both parties.
After helping City to the Premier League title in 2012, a return to England is seen as a possibility, and Liverpool and Arsenal are thought to be likely destinations.
However, much depends on both clubs’ other transfer plans.
The Gunners are thought to be ready to talk to Balotelli’s representatives if they cannot get prime target Karim Benzema, while Liverpool may well look to ‘Mad Mario’ if they lose their battle to keep Luis Suarez – Barcelona and Real Madrid are keen.
The Azzurri star is known for his crazy lifestyle and frequently made front-page headlines when playing for City due to a series of high-profile incidents away from the pitch.