Cadena Cope reports that the free agent is currently in discussions with Intercity Alicante.
Intercity are competing in the Primera RFEF and have moved for Balotelli as they target promotion to the Segunda Division.
The 34 year-old is off contract after leaving Adana Demirspor over the summer.
A move to Intercity would mark a first Spanish football experience for former Inter Milan, Manchester City and Liverpool striker Balotelli.