Roberto Di Matteo is known to be very keen on the Atletico Madrid striker with reports claiming a January move could be in the pipeline but he will face competition from City in the race for his signature.
Reports claim the Premier League Champions are ready to let Balotelli go following another bust up with the player and Falcao is being targeted as his replacement.
Chelsea would still fancy their chances of winning the race for his signature but for now the player is happy with Atletico and intends to see out his contract with them.
"The opportunity of playing in a different league and for a different club will come at the right time," he revealed. "I don't stop dreaming; on the contrary, I know at some point I might want to move to a different team.
"But I still have three years of contract with Atletico Madrid and that's the reality."