Reports in the Italian press claimed the 19 year old, who has been heavily linked with an Eastlands move, had already put pen to paper with the Premier League outfit and all that remained was for the two clubs to sign the formalities.
Italian newspaper Gazzetta dello Sport reported Balotelli had penned a five-year contract worth £3.3m) a season, while the initial transfer fee would be £25m, possibly rising to £30m based on appearances and goals.
It also stated he would link up with his new team-mates on Wednesday and could even turn out for City against Inter in Baltimore on Saturday as part of the two clubs' pre-season tours of the United States.
But Balotelli's agent, Mino Raiola, has dismissed the rumours as false and his client has yet to agree a deal.
Raiola told Ansa news agency: "Nothing has been signed between Balotelli and Manchester City and I doubt anything will be in the next few days."