Massimiliano Allegri has confirmed the AC Milan star will not be involved in their squad for the competition after only recently returning from holiday
Balotelli, 22, spent two-and-a-half seasons at Manchester City before returning back to Italy to join Milan in January, where he has been in superb form - netting 12 goals in 13 Serie A appearances.
However, he will not feature in the pre-season tournament against his old club as he has only just returned from holiday following his involvement in the Confederations Cup tournament in Brazil.
"Mario is an important player for us, but he won't be here. He's only been in training for two days after his holiday," Allegri told reporters.
The Audi Cup also includes hosts Bayern Munich and Brazilian side Sao Paulo and gets underway on Wednesday.