The San Siro giants have seen a £17m approach knocked by the Premier League champions, who are thought to be looking to sell for in excess of £20m.
Milan are far from keen to match these demands, but have not given up hope of luring the controversial front-man back to Italy.
They are now set to throw former Portsmouth man Prince-Boateng into the mix, in an attempt to make up the difference in valuation.
Roberto Mancini is believed to be happy to keep the 22-year-old at the club, but could allow him to leave to free up funds to strengthen his squad ahead of Thursday’s transfer deadline.
It’s unclear as to whether Mancini will be willing to entertain the idea of a swap, but the addition of the Ghanaian may tempt him.
Balotelli is thought to have recovered from an illness and could face QPR, and City coach David Platt has revealed that speculation surrounding the striker’s future will not have an effect on performances:
“He was back on the training pitch on Sunday morning, so he’s fine. He’s in the squad for QPR.
“As far as we’re concerned he’s still a Manchester City player.”