Balotelli enjoyed a superb Euro 2012 campaign under Prandelli, but the coach says the 22-year-old has only himself to blame if City boss Roberto Mancini sells him.
Balotelli is appealing to the Premier League to overturn a club fine imposed for on-field indiscipline, obviously putting himself AGAINST the club.
Prandelli says the player has problems, but he was quick to note a transfer would not solve all the players problems and it was up to the Balotelli to sort out his career.
Prandelli: "Mancini is absolutely right.
"Balotelli must listen to him, I agree with him.
"Everything depends on Mario, however. Coaches can try to stimulate and negotiate with you but everything must start from him.
"Returning to Italy could help him. It's important for him to have continuity, the city or the country is not the problem.
"I love Mario but it is important for him to start to think about his job.
"He has everything to play well but he can't continue to play like today.
"We wanted more from him.
"When you have a player that has Mario's quality, you cannot understand why he continues to throw it out of the window.
"It is incredible."