Il Messaggero, Gazzetta dello Sport and Nicolo Schira are reporting that the former Manchester City and Liverpool striker has been requested by club owner Massimo Cellino to terminate his contract with immediate effect.
Balotelli was offered a consensual termination, which he refused, and the club then sent a letter to his lawyer saying his contract would be ended.
The 29-year-old's current deal runs until 2022, but there is a break clause at the end of the 19/20 season if the Rondinelle are relegated to Serie B.
Balotelli, who has scored five goals in 19 appearances for the Serie A club who sit bottom of the table, has been repeatedly absent from training since coronavirus lockdown measures have eased in Italy.
He missed ten days of training in January and a non-mandatory session on May 26.
Cellino, who used to own Leeds United, recently told the BBC's World Football programme that signing Balotelli was "a mistake" and the pair have reportedly clashed on the training ground.
Balotelli joined his hometown club last summer after four years in Ligue 1 playing for Nice then Marseille.
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