Balotelli has been at Nice since 2016 and has been a hit in France.
But the striker is yet to score for Nice this season and is set to leave when his contract expires at the end of the season.
Balotelli has not played since December 4 and his agent is reportedly trying to negotiate an early termination of his Nice deal.
And bookmakers Ladbrokes have Newcastle installed as the 5/2 favourites to land the Italian.
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Balotelli, 28, could be available for a free transfer and that would likely appeal to Toon owner Mike Ashley.
He is trying to sell the club and funds for manager Rafa Benitez to spend on players in January are running low.
But Newcastle could face competition to sign Balotelli if indeed he becomes available.
Marseille are 7/4 to pinch him from Nice and the striker has already proven himself a hit in Ligue 1.
Wolves are 6/1 to land the forward, as are Crystal Palace.
Wolves are keen to strengthen to maintain their excellent run in the Premier League this term.
West Ham, meanwhile, are supposedly looking to offload Andy Carroll and could also lose Marko Arnautovic in the transfer window.
They are 8/1 to sign Balotelli but those odds could shrink as the months goes on.
There were reports on Thursday suggesting Carroll could be swapped for Newcastle’s Jonjo Shelvey.
Carroll started off at Newcastle and could aid their relegation scrap if he stays fit.
As for Balotelli, he has not played in England since leaving Liverpool in August 2015 on loan to Milan.
The forward cost the Reds £16m when arriving from Milan a year earlier.
Balotelli won the Premier League title with Manchester City back in 2012 but has endured a tumultuous career.
He scored 25 goals for Nice last season but has failed to find the net this term.