Manchester City are reportedly willing to sell the striker, with Milan in pole position to secure the services of Balotelli, should he leave the Etihad.
And Tassotti revealed that although he is not involved in the club's transfer dealings, he believes that Balotelli would fit in well at Milan should he sign.
"Mario Balotelli would have no problem settling in at Milan," he told Sky Sport Italia.
“Is Balotelli arriving? It’s the club that works on the transfer market, not me.
"Having said that, I’m sure Balotelli would have no problem settling in at Milan. He is a very strong player, there is no doubt.
“He’s still very young despite the fact he has been playing at this level for a long time. He had a fantastic Euro 2012 and we are talking about a champion.”Milan are reported to have offered €20 million for Balotelli, a figure short of Manchester City's €28m valuation.
There have also been suggestions that City would prefer the fee paid upfront, rather than in the six installments proposed by the Italian club.
On Sunday, Milan strengthened their position to land a European spot as a 1-0 victory over Atalanta moved the Rossoneri up to fifth place in Serie A.