AC Milan on an initial loan deal, with the redemption fee set above €10 million.
The Liverpool striker has endured a torrid time during his spell at Anfield and looks ready to return to the Rossoneri.
La Gazzetta dello Sport reveal that the Reds will accept a loan fee of around €3 million for the striker, who joined the club last season for around €20 million.
It is suspected that this deal will incorporate a price in excess of €10 million for Balotelli should Milan choose sign the outright next summer.
The transfer of the former Inter striker has been drafted up over the weekend and is expected to be completed soon meaning Balotelli may be available to line up for the Rossoneri against Empoli next weekend.
