Balotelli has failed to perform since City brought him over from Inter Milan back in 2011.
But reports are now suggesting that City are ready to cut their losses and sell him for £25 million, with AC Milan reportedly interested.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.