The Torino striker has received his first Azzurri call-up since November 2010 following the withdrawal of the Inter attacker, who has been sidelined with a hamstring problem
Balotelli was surprisingly left out of the original 27-man panel when it was announced on Sunday but was in contention for a recall after it emerged that Osvaldo was struggling with a hamstring problem.
However, Conte has instead decided to turn to Torino striker Quagliarella, who was last called up by his country in November 2010.
Conte, of course, knows the 31-year-old well, having worked with the attacker for the duration of his three-year stint in charge of Juventus.
Quagliarella's call-up represents the second injury-enforced change to the original squad, with versatile Juventus defender Angelo Ogbonna having replaced Parma centre-half Gabriel Paletta, who pulled out with a back problem.
Italy host Netherlands in Bari on Thursday evening before travelling to Oslo to take on Euro 2016 qualification rivals Norway next Tuesday.