The Italy international's agent has reiterated his client's intention to become a 'key' figure at City.
Mino Raiola said: "Balotelli? He will remain at Manchester City with the goal of becoming a key player.
"He has to improve something, but he need to feel confidence." There has been speculation in the past that Balotelli will return to Italy to join either his former club Inter or cross-city rivals Milan.
But Raiola said that, although Balotelli had yearned for a return to Italy, he is now happy in Manchester.
He added: "He asked to come back to Italy two years ago, but not anymore and not now."