The Liverpool striker reportedly took offence to a woman taking photos of his Ferrari in Wythenshawe around 15.00GMT on Thursday afternoon.
Police confirmed to Goal that the matter is being looked into, but the attending officer is yet to submit a full statement.
Balotelli has a history of involvement with police and only last month was the subject of an investigation after suffering racial abuse on Twitter.
The former Manchester City striker recently returned to England after 18 months in Italy with AC Milan, moving to Anfield in a £16 million deal.
However, the striker has scored just once so far, in a Champions League win over Ludogorets, and risked the ire of the Anfield faithful by swapping shirts with Real Madrid defender Pepe at half-time during the two sides' clash on Wednesday evening.
Brendan Rodgers later claimed that he would deal with the matter "internally", and later lost his cool when further quizzed about the Italian on Thursday.