The injured Italy captain believes that his AC Milan team-mate can demonstrate his full potential during the World Cup, also backing the Azzurri to reach the semi-finals
The Azzurri skipper was ruled out of the tournament after breaking his leg in a clash with Republic of Ireland defender Alex Pearce in a 0-0 friendly draw on May 31.
However, despite expressing his disappointment at missing out through injury, Montolivo expects Italy to enjoy a successful tournament and believes that Balotelli could be a talisman for his side.
"Balotelli can express his potential through consistency," the 29-year-old midfielder told Gazzetta dello Sport.
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"I believe, however, that we will get to the final or semi-final, as we did in the European Championships.
"Brazil, Spain and Germany are stronger, we are competing with Argentina and the Netherlands and it will be important for us from the opener against England.
"There is the right mix of experienced and young players. The core of the group is from the European Championships and the new faces can bring something extra."
Montolivo was part of the Italy squad for the 2010 finals in South Africa, in which the Azzurri finished bottom of Group F behind Paraguay, Slovakia and New Zealand, and expressed his frustration at not being able to make amends.
"The injury was a mixture of anger and disappointment," he continued. "When I got hurt I understood, I went to the doctor and when I tried to get back up, I heard a crack and saw the World Cup vanish.
"I thought it was bad luck - I'm a fatalist - and I have taken it the right way. It is part of the game and of life. You cannot decide but, if you do fall, you have to get back up.
"In that week I got married and missed the greatest opportunity of my career. It was not all easy but we must accept it. I reviewed the images and when I was on the stretcher I looked lost.
"The difficult moment was in the evening in the hotel when my team-mates and the staff came to console me. I ran off in tears."