Even though it appeared the negotiations between the two clubs had broken down, the latest reports suggest the Rossoneri are prepared to make one final offer before the January transfer window closes.
Milan vice-president Adriano Galliani has instructed agent Mino Raiola to fly to Manchester and present a €20 million offer to City chiefs.
Manchester City first valued the player at €37m, then lowered the asking price to €28m, and it is now believed they are requesting just €25m.
The Citizens may not be willing to sell the player for less than what they paid for him in the summer of 2010 (€22m plus bonuses), but Milan chiefs are hoping they will jump at the opportunity to get rid of the player who is seen as a disruptive influence on the dressing room.
Balotelli is a boyhood fan of the Rossoneri and this may be a perfect opportunity for him to finally arrive at San Siro.