The Daily Mail says Chelsea boss Carlo Ancelotti is ready to go head to head with Arsenal for the 19-year-old.
Balotelli is high on Arsenal boss Arsene Wenger’s list for the January transfer window, due to Robin van Persie’s injury.
Ancelotti is ready to offer Balotelli first-team football as he searches for replacements for strikers Didier Drogba and Salomon Kalou who will be away for the Africa Cup of Nations in January.
“I would sign a player like Balotelli,” said Ancelotti. “I like him and he would always be in the first team under me.”