Balotelli strained a muscle in the defeat to Brazil at the weekend and was to miss the Spain semi final on Thursday.
He will now miss the rest of the tournament with his AC Milan team mate Stephan el Shaarawy set to take his place.
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The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.
Five English clubs will compete in the last sixteen of the Champions League for the first time ever as Liverpool, Manchester United, Manchester City, Chelsea and Tottenham face some difficult away matches.