The Rossoneri have been preparing an approach for the ex-Inter Milan striker, a self-confessed Milan fan, but City are reported to be demanding 28million euros (£23.5million) for a player they bought for 22million euros (£18.5m) in 2010.
Milan are also eager to tie up a long-term loan deal for Real Madrid forward Kaka having raised 15million euros (£12.5m) from Alexandre Pato's sale to Corinthians last month. Galliani told the Gazzetta dello Sport: "If Balotelli's price comes down then I'll get over to Manchester immediately."
While it remains to be seen whether the Serie A giants will make their interest in Balotelli formal before the February 1 deadline, representatives of Milan, Real Madrid and Kaka are set to hold a second round of talks over the player's future on Tuesday, following positive discussions in Milan last week.
Rossoneri president Silvio Berlusconi has never managed to keep his adulation for the Brazilian playmaker a secret.
Kaka won the Serie A title, Champions League, Supercoppa and the Club World Cup during a successful six-year spell in Milan, being awarded the Ballon d'Or in 2007 before joining Real for 68.5million (£57.5m) in 2009.
Quoted on Gazzetta.it, Berlusconi told Sky Italia: "As a fan I have always dreamed of his return. Not just because he is a great player but because he is a great man and he has always been in our hearts."
When asked if Milan could persuade Manchester City to part with Balotelli for six sizeable instalments, as has been suggested in the Italian press, Berlusconi added: "Frankly, I don't know."
Milan climbed into sixth place in the Serie A table with a 2-1 victory over Bologna on Sunday and head coach Massimiliano Allegri remains cautiously optimistic that Kaka could arrive in time to boost a late challenge for the Champions League places.
"It's not definite that Kaka will come so we have to wait for that," he told acmilan.com. "If he comes, the technical level of the team will rise without a doubt."
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