The Italian forward gained a reputation for his wild off-field antics with the Sky Blues prior to returning to his homeland last year.
He has since impressed at the San Siro, but rumours suggest that the Serie A giants and the player himself have grown tired of their relationship.
This has alerted Spurs, who are believed to be ready to offer him a return to England.
Tim Sherwood is desperate to land a top class goalscorer, and could even be willing to sacrifice club record signing Erik Lamela to push through a deal.
Milan are one of a host of teams thought to be interested in the £30m man, and could be willing to take him in exchange for ‘Mad Mario’.
Lamela himself is thought to be keen to return to Italy – where he impressed while at Roma – which could ease a possible transfer.
Balotelli divided opinion during his time with City, but he did contribute to their Premier League win in 2012.
Spurs’ director of football Franco Baldini is well connected in Italy, and is thought to be a fan of the controversial goal-getter.