Premier League champions drop their asking price.
There has been much speculation surrounding the Italian’s future at the club recently, with a series of off-field incidents and poor performances frustrating his manager Roberto Mancini.
Milan are rumoured to be highly interested in the front-man, who could be tempted to end a turbulent spell in England and return home.
However, the San Siro club are unwilling to break the bank for his signature, despite losing a number of established stars, including Zlatan Ibrahimovic, Thiago Silva and Alexandre Pato, for big money.
The club’s vice-president Adriano Galliani is hopeful that a deal can be reached in the near future, but he believes that the decision will ultimately be down to Manchester City:
“It all depends on Manchester City, ” he is quoted by Sky Sports.
“Should our request fail, we will move on. At the moment we will stay where we are. We must wait and see what happens.
“Could we play in instalments? It is possible if we can agree on a sum to be paid.”
Milan are believed to in the market for top, young talent and Balotelli, 22, appears to fit their plans. They have also been linked with Newcastle full-back Davide Santon.