Press Association Sport understands the Barclays Premier League champions have held talks with both Serie A clubs over the possible transfer of the controversial Italian.
But City are not actively seeking to sell the 22-year-old and will only allow him to leave the Etihad Stadium if they receive an offer that matches their valuation.
Discussions were initiated by the Italian clubs and it now remains to be seen if either can push through a deal before Thursday's deadline.
Speculation in Italy has suggested Milan are prepared to pay around £20million plus add-ons but no offer has yet been accepted.
Previous reports have claimed City value Balotelli at around £28million but there has been no confirmation of this.
Balotelli cost £24million when he signed from Inter Milan in August 2010.
Contrary to some reports, Balotelli has travelled with the City squad to London for Tuesday's Premier League game at QPR.
The forward is in contention to play having overcome the virus which kept him out of Saturday's FA Cup fourth-round win at Stoke.
Yet whether or not he features, his future is likely to be a subject raised in the aftermath of events at Loftus Road as the transfer window enters its final 48 hours.