The News of the World says Mancini is ready to offer an escape route from Italy to the temperamental 19-year-old, who has clashed repeatedly with Inter's manager Jose Mourinho.
Mancini helped nurture Balotelli through his early years and believes the teenager can make a big impact in the Premier League.
The City chief said: "I would bring Mario here because he is young and has great potential to be world class.
"He can resolve games and I never had any complaints about him."
Arsenal have also been linked with an £18million bid for the striker but Mourinho wanted to tempt Gunners skipper Cesc Fabregas to Italy as part of the deal.