The Daily Star says Balotelli has spent the last three days in Naples giving evidence about his alleged links to local Mafia boss Marco Lorio, who is facing charges including money laundering.
He returned to Manchester yesterday with the events casting huge doubts over whether he'll be in the right frame of mind for City's trip to Fulham.
To make matters worse, Edin Dzeko has started the campaign like a house on fire and Balotelli's chances look bleak.
The 21-year-old is becoming increasingly frustrated but manager Roberto Mancini insists he has no concerns about the bad-boy striker and has told him he still has a big future at City.
Mancini said: "No I'm not worried about Mario. In the last four weeks he didn't play but he's worked very well.
"I'm sure that he can have a good season and I've been impressed with his attitude.
"I'm not sure he can change in four weeks, but he's worked very well even though he hasn't played."