The Macedonian forward says that the Italian striker is "a real champion", and that "star players are accepted" in his team, so he would feel at home with the Serie A club
The Partenopei president Aurelio De Laurentiis recently claimed that Balotelli would be a "dream signing", and Pandev believes the Italy star would do well at the San Paolo.
"[Balotelli] is a boy full of quality, a real champion," the former Inter man told the Corriere dello Sport.
"He has an exuberant character, but he is young. I would see him fit in well here because in this Napoli side star players are accepted."
Napoli currently sit seven points behind Juventus in top spot but made an impressive start to 2013 with a 4-1 victory over Roma, whilst the leaders fell to a surprise 2-1 defeat at home to Sampdoria.
"According to some, the Scudetto is Juventus' to lose," he added.
"But they showed last Sunday [against Sampdoria] that they can be beaten. We are strong and we have to believe. I believe it.
"I absolutely did not sign up for second place because I believe in the quality of our squad and in what we are doing. And now we are physically growing too."
Napoli are fourth in Serie A with 37 points from their 19 games.