Press Association Sport understands a deal has been struck for Balotelli to join AC Milan.
The Serie A giants have agreed to pay around £20million for the player, with some of the fee being made up by bonuses.
City have so far made no comment on the matter.
As contracts are yet to be signed, a degree of caution is understandable.
However, providing there are no unforeseen hitches, Balotelli will join Milan ahead of Thursday's transfer deadline, thus ending a remarkable two-and-a-half-year stay with the Blues, during which time the forward has attracted almost as many headlines for off-field incidents as success on it.