The Daily Express reports that the 23-year-old striker could be reunited with his former Inter boss Jose Mourinho at Stamford Bridge.
Balotelli's agent, Mino Raiola, has revealed that his client could be set for a move to Chelsea.
"Balotelli and [Chelsea boss] Jose Mourinho could be reunited because they know each other and they didnít leave each other with hate," Mino Raiola told Tika Taka on Italia 1.
"There was a not very nice incident between them, but they parted company on good terms.
"They have remained in contact and there is mutual respect.
"I know Milan Vice-President Adriano Galliani will not agree, but Mario is a great striker.
"That is for certain and he could perhaps be that at Chelsea."