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.”
A goal apiece from James Tomkins and Luka Milivojevic handed Crystal Palace a crucial 2-0 win over Huddersfield at the John Smith's Stadium on Saturday evening.
Manchester United bounced back from their Champions League exit as they beat Brighton 2-0 at Old Trafford on Saturday night to reach the FA Cup semi-finals.
Tottenham reached the FA Cup semi-finals after they cruised to a 3-0 victory over Swansea in their quarter-final clash at the Liberty Stadium on Saturday.
Premier League basement club West Brom squandered the lead as they suffered a 2-1 defeat to Bournemouth at the Vitality Stadium on Saturday.
Chesterfield boss Jack Lester felt his side were unlucky not to claim all three points after their 1-1 draw at Cheltenham.
New Swindon manager Phil Brown revelled in his side's victory at Cambridge in his first game in charge.