The Eaglets are currently rebuilding under new boss Lucien Favre after the departure of Claude Puel, and key players Hatem Ben Arfa, Valere Germain, Jeremy Pied and Nampalys Mendy.
Favre has already added a host of talented youngsters, as well as experienced Brazilian defender Dante, and has not ruled out the possibility of Balotelli joining the group - but only if he is ready to pull his weight.
Favre, who admitted to not having met the striker, said: "I don't know him personally, but if he runs and wants to help the youngsters, then why not?
"If he doesn't want to run, then there's no way he'll come here."
So far, Serie A side Sassuolo have turned down the opportunity to sign the Italian, but Swiss side FC Sion did reveal that they were in talks over a potential deal.
Sion president Christian Constantin told reporters earlier this week: "I can confirm that we are talking and negotiations are under way.
"Obviously I cannot know whether it will have a positive conclusion or not."
Balotelli, who spent last season on loan with AC Milan, has been told by Reds boss Jurgen Klopp he will not play for the club this season.