The report claims City have agreed the sale of Balotelli to AC Milan, in a deal worth €22m spread over five years. Negotiations between the two clubs have dragged for much of the transfer window, but it now seems a breakthrough has been reached.
Balotelli will reportedly take home €4m-per-year - a paycut from his current £110,00-a-week Manchester City salary - and the Italy international will sign a four-year deal with the Italian giants.
The former-Inter Milan star is set to return to the San Siro just two years after leaving Serie 'A' for Roberto Mancini's side.
The striker helped City to their first Premier League title last season, providing the assist for Sergio Aguero's championship-clinching goal in the game's final season against Queens Park Rangers.
The 22-year-old also won an FA Cup during his time at the Etihad Stadium.
The report claims Balotelli said goodbye to his City teammates on Monday morning, ahead of a flight to Italy for a medical with AC Milan club doctors.
Despite last season's successes, Balotelli has struggled to cement a first-team place this season - a series of high-profile controversies have not helped, including the most recent bust-up with Roberto Mancini - and the Italian forward has just one league goal to his name this term.
Since November, Balotelli has featured just five times, and was reportedly made available for transfer following last month's training ground dispute with Mancini.