Balotelli has netted 12 times in just 29 international appearances but he has developed a reputation as a volatile and ill-disciplined character and there remains some doubt within his homeland over the wisdom of relying on such an unpredictable player on the game's grandest stage.
However, Muslera is a huge admirer of the AC Milan attacker and says he should be one of the first names on Cesare Prandelli's team sheet.
"I would take Balotelli in any squad," the 27-year-old told Gazzetta dello Sport. "I would like him as a team-mate. I like him. He has character."
Uruguay have been drawn in the same group as the Azzurri, as well as England and Costa Rica, and the former Lazio goalkeeper is well aware of the threat posed to his country's hopes of reaching the knockout stages.
"They have a complete squad; strong in every department," he added.
"[Midfielder Andrea] Pirlo is a champion and [goalkeeper Gianluigi] Buffon continues to amaze: he's 36 and yet it seems like he's only 25."
However, Muslera believes that in Luis Suarez and Edinson Cavani Uruguay have a strike partnership capable of firing Uruguay to glory.
"Suarez and Cavani are a spectacular duo," the Galatasaray shot-stopper stated. "One relies on strength, the other speed.
"But, above all, they they help us a lot, because Cavani is very good at coming back."