Balotelli was dropped from the team for several games earlier this year by former coach Jose Mourinho because of his poor attitude.
However, the 19-year-old has three years left in his contract with the Nerazzurri and is set to remain at the San Siro.
"Was there a real offer from City? Yes, there was but it is not for me to say," Balotelli's agent Mino Raiola told Gr Parlamento.
"Mario Balotelli's situation is calm. He is an Inter player. There are no negotiations, hence, he will remain at Inter."