The Daily Mail says it is understood that Mancini wants to see a dramatic improvement from the 22-year-old striker whose impact on the pitch - just two goals in 13 appearances this season - no longer justifies the distraction he causes.
Balotelli was spotted partying by City fans the night before the Spurs game. He was seen entering the Panacea Restaurant and Bar in Alderley Edge at 1am - with City kicking off at 1.30pm against Spurs that afternoon.
Balotelli had been axed from the City squad the previous day and told he was not required at the team hotel that night.
Although Balotelli had not officially broken any rules by being out as he was not in the squad, the latest indiscretion has not gone down well.
City's new director of football Txiki Begiristain is believed to be open to selling Balotelli, and has told Mancini that he must offload players before adding to his squad in January.