Nice confirmed the news of Balotelli's contract extension on Sunday afternoon, meaning he will remain at the Allianz Riviera as they attempt to qualify for the 2017-18 Champions League group stage.
The striker, who also counts Milan and Inter among his former clubs, joined Nice on a free transfer in the summer of 2016, signing on a one-year deal.
In signing for the French club, Balotelli brought an end to a disappointing spell at Liverpool and he flourished under the guidance of Lucien Favre, scoring 15 goals in 23 league appearances.
He had been linked with a move away from the club at the conclusion of the 2016-17 season. Dortmund and Marseille were among the teams linked with the Italian, but he has extinguished speculation surrounding his future by penning a new deal.
The length of the contract remains a mystery as Nice didn't reveal how many years will run on Balotelli's new deal, however his salary is believed to have decreased to make him more affordable for the club.