City are understood to have offered about £25m for Balotelli but Inter are holding out for more.
Mancini denied he would be taking a risk in signing the 19-year-old, who has had several high-profile disputes with team-mates and the former manager José Mourinho.
"There is not a big problem with his character," said Mancini, a former Inter manager. "He is a young player. There have been times in the past when he made mistakes, but that's normal.
"He is not a difficult player. At the moment Inter are asking a lot of money for him. We won't wait [forever]. We have other targets.
"The problem is that when Manchester City come talking, other clubs ask high prices. We have a lot of good players already but at the moment only Manchester City are going in the market. So far we have bought three new players and are happy."