The ex-Manchester City man is on the verge of returning to the Premier League with Liverpool having arrived at Melwood on Friday to undergo talks ahead of a £16 million move to Anfield.
Balotelli has hit the headlines for his on and off the field antics throughout his career and although Inzaghi knows his quality is not in doubt, the Milan coach expects the San Siro dressing room to be more harmonious in his absence.
"When a player leaves, it means all the parties involved took this decision. We are certainly losing a great player, but we gain something more in team spirit and hunger," Inzaghi told reporters.
"I wish Balo all the best at Liverpool."
Fernando Torres and Mattia Destro are among several strikers linked with a move to Milan to replace Balotelli, and Inzaghi is hopeful a deal can be done before the transfer window closes.
"The directors know what I want on the market," the former Italy forward added.
"I have to train the players at my disposal and we have a squad up to the task. If someone else arrives then even better, but otherwise we're fine as we are."