Balotelli has been hammered for his performance at the World Cup.
"I think Balotelli is a great player," Schillaci told Sky Italia's Gianluca Di Marzio. "Naturally, in order to be a champion you need to show it on and off the pitch.
"I don't like some [of his] attitudes, but everyone does as they wish. I'm sorry because he has great potential and he could do more compared to what he does.
"He needs to understand that in football you need to use your head as well as with your feet."
For the big stories and the banter follow us on Twitter: @tribalfootball