The Rossoneri say they will not appeal against the Italy international's three-game suspension after his red card against Napoli.
The suspension was given for misconduct against an opponent and protests against the match officials as well as addressing the referee with insulting and intimidating expressions.
The San Siro side had initially stated that it would appeal the Italy international's punishment, but the club has now decided against this action because it feels there is little chance of it being successfully overturned.
"AC Milan announce that it will not cultivate the appeal against the suspension of Mario Balotelli," a club statement on the official website reads.
Balotelli will consequently miss Wednesday's match against Bologna as well as the games against Sampdoria and Juventus.
The striker has netted three goals in four Serie A appearances so far this term.