The 30-year-old has also attracted the interest of clubs such as AC Milan, Juventus and Napoli, with the Partenopei having made a €5 million offer, but Balzaretti supposedly prefers a transfer to the Giallorossi.
"Roma's interest is the most intense, and Federico has told me that he would find it fantastic to live in Rome," the Palermo president stated to Radio Radio.
"However, they will have to improve their offer and, at least, match what Napoli are willing to pay. That means they would have to table a €5m bid without the inclusion of any players.
"Juventus have also stepped forward, while Milan are looking for another [Antonio] Nocerino-like deal. That won't happen, though. Balzaretti is not Nocerino. We'll see what happens."
Balzaretti is contracted to Palermo until June 2013.