Mancini has lost patience after the 22-year old's performance in the Manchester derby on Sunday. Balotelli was hauled off just after 10 minutes in the second half after a dreadful performance in the defeat against Manchester United.
The Serie A giants AC Milan and the players former club Inter Milan are ready offer him with an escape route in January.
Mancini also questioned Balotelli's commitment to the club, saying: "It is important for him to start to think about his job."
Mancini gave Balotelli a start ahead of in-form Carlos Tevez but saw his tactics fail after seeing his side go down by two goals in the first-half. Tevez replaced the Italian and immediate an impact on the game.
However, Mancini defended Balotelli saying he has 'top quality' while his agent Mino Raiola said the striker will stay at City. "Absolutely, You can ask me the question another four hundred times and it will always be the same answer."
Meanwhile, City chiefs have urged Mancini to sell players before buying when the tranfer market re-opens. The English champions have been linked to top targets such as Liverpool's Luis suarez and Atletico Madrid star Radamel Falcao.
Balotelli's record of three goals in all competitions and only one in the Premier League could prompt City to offload their controversial striker.