Berlusconi is still keen to acquire the services of Balotelli, but insists the Brazilian international is not for sale.
The former Italian prime minister told Milan Channel: "An exchange involving Pato and Balotelli? I don’t like exchanges.
"Pato is definitely not on the market. He is one of our best players and has the opportunity to become an icon here over many years.
"Unfortunately, his frequent injuries have been a problem, but we just need to handle him right.
"AC Milan is the perfect setting for him."