The Italy international has been strongly linked with a return to Serie A after a controversial season in England.
"I'm in Manchester but it has nothing to do with the transfer market," Balotelli's agent Mino Raiola said to Sky Italia. "There is no intention by Manchester City to sell the player."
He went on: "He (Balotelli) has always stated that he is happy in Manchester and finding his balance. Of course, that balance is lost when things don't go well."
City boss Roberto Mancini revealed last weekend that he would consider selling the 21-year-old after he was sent off in the 1-0 Barclays Premier League defeat to Arsenal.
Balotelli, who joined City from Inter Milan last summer, later apologised for his behaviour and claimed he would only consider his future at the end of the season.
"I have spoken to Mario and to Mancini," Raiola said. "There was a tense time between them but now all is calm.
"Mario has understood his mistakes in every sense, at times he makes mistakes without doing it on purpose."
Reports in Italy have claimed Inter and AC Milan would battle it out to acquire Balotelli's services this summer. He is under contract with City until June 2015.
However, Inter Milan president Massimo Moratti brushed aside those reports, telling Sky Italia: "From a technical standpoint he is very good but we haven't made a move. Honestly, he is not in our plans."
Source: PA
Source: PA