As noted by Sky Italia [as per ESPN], the two clubs began discussions earlier in the week, with the Biancocelesti keen to seal a deal for the Italy forward ahead of their Champions League playoff fixtures in August.
ESPN note that the Reds are open to listening for offers for their forward, and their willingness of offload the flop have prompted considerable interest in his homeland.
According to Guardian Sport, newly-promoted Bologna are also keen on the forward—having previously been linked to his striking partner Fabio Borini earlier in the summer.
Balotelli moved to Anfield last summer in a deal understood to be worth £16 million when he left Italian giants AC Milan [via BBC Sport].
However, the striker endured a miserable campaign—scoring only one league goal—and wholly failed to replace the goals lost with the departure of Luis Suarez to Barcelona.
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As the season wore on, Balotelli gradually lost the faith of manager Brendan Rodgers and he didn’t even travel with the Merseysiders on their pre-season tour of the Far East [via Express Sport].
The Northern Irish coach has invested heavily in his attack this summer—bringing the likes of Christian Benteke, Danny Ings and Roberto Firmino to the club—and it is becoming increasingly hard to see a role for ex-Manchester City hitman Balotelli at Anfield next season.