Speaking to reporters, AC Milan president Silvio Berlusconi clamied the Italian international's futures lies at the San Siro, and quashed rumours of a possible switch to North London.
Berlusconi said: "Balotelli? I believe that he will stay and will be part of the new team"
AC Milan suffered a disappointing season last campaign and are set for a period of transition as they look to re-establish themselves as one of one of Italy's top sides.
Berlusconi discussed the future of current manager Clarence Seedorf and commented on the possibility of promoting Fillipo Inzaghi from coaching the youth team, to being the number one at the seven-time European champions.
But ultimately, the Milan president was determined in his belief that Balotelli - who made a €20 move from Manchester City in January 2013 - will be central to the Italian giants in their rebuilding this summer.
The 23-year-old had been the most talked about Arsenal target so far this close-season with the potential deal splitting Gunners fans and critics alike.
There had however been no official word from Arsene Wenger, but the 64-year-old has shown interest in Balotelli in the past and wanted to sign the striker in 2009 before his move to Manchester City.
Wenger once said when discussing Inter Milan: “In particular I am keeping an eye out for Balotelli, a player I like very much. In my view he can be one of the best.”
But it now seems that even if Wenger would be keen on bringing Balotelli to the Emirates, AC Milan are reluctant to sell their star striker who has scored 30 goals in 54 games during his time with the club.
But Balotelli himself has hinted at a desire to move back to the Premier League, so circumstances may change should the Italian wish to push through a move.
Would Arsenal fans like to see Balotelli at the Emirates?