Balotelli was handed a one-match ban after picking up his fourth yellow card of the campaign in the 2-2 draw with Fiorentina and then given a further two-game punishment for insulting an assistant referee.
But rather than be happy at facing a weakened Rossoneri, Bianconeri director Nedved would like to see the controversial forward feature to provide a greater spectacle for supporters.
He told reporters: "Obviously it's always better when both teams have a full complement of players, not only for Milan, but for everyone.
"If the disqualification was reversed for Balotelli, I expect a great match with two top teams playing against one another, but it will still be a great game if he doesn't play."
The ex-Manchester City striker has scored 11 times in 10 games for club and country since returning to Italy in January.
Milan goes into the game in third place, four points adrift of second-placed Napoli and 15 behind leader Juve.