Having agreed to a €3.5 million a year wage deal for Balotelli, City are now hoping to obtain a discount on the transfer fee, reports Sky Sport Italia...
Sky Sport Italia reports Mino Raiola, the player's agent, and a lawyer working on Balotelli's behalf met with Inter director Marco Branca.
Raiola informed the transfer director that his client has agreed personal terms with City, believed to be worth €3.5m per annum over five years.
However, City have changed strategy, and they are offering Inter a lower transfer fee.
Previous reports suggested the clubs had agreed on €30m plus bonuses which could take the deal up to €35m in total.
Now City are offering €26m plus bonuses, €4m shy of what Inter were hoping to receive.
But despite the latest change, voices from the Nerazzurri camp are optimistic and a deal should be concluded within days once Inter agree on a final closing fee with City.
Earlier Raiola said he was "hopeful and working towards closing a deal with City".