Balotelli scored an hat-trick in the 4-0 win over Aston Villa on Tuesday.
Mancini told Sky Sports: “For me if Mario plays like he did this afternoon he can become one of the top players in Europe.”
Reports have suggested that Balotelli is keen on a return to Serie A, as he has failed to settle in Manchester.
“I think it is normal. He is only 20 years old, he is young it is the first time he has gone out of his home so it is normal. He’s happy but maybe he is missing his family but everything is normal.
“If he plays like this and scores three goals I hope he continues to think this,” he joked.
He added: “I think it is very important for the guys to help Mario but this season will be a very important experience for his career. It is important to keep him because he is a good player because I think he can improve a lot.”