Balotelli has endured a turbulent campaign, failing to impress under Patrick Vieira at Nice after a reported move to Marseille collapsed prior to the 2018-19 season, before belatedly moving to the Stade Velodrome last month.
In addition, the 28-year-old's role with the national team has been similarly uncertain.
The forward has played in Marseille's past two matches, though, including scoring after coming on from
"We haven't lost sight of anyone. Mario is part of the group," the Italy coach told a news conference. "He knows that well and he also knows that it depends on him, not me.
— Mario Balotelli (@FinallyMario) May 24, 2018
"So far he's played little. [On Sunday] he played only his second game in months. But if he scores consistently between now and the end of March, maybe he could come back."
Quagliarella has 16 league goals this season - only Cristiano Ronaldo has scored more in Serie A this term - and Mancini admits he could not ignore the veteran's form.
"He deserves to be here, despite his age," Mancini said of Quagliarella. "He is playing well, scoring goals and is one of the top-scorers [in Serie A].
"He has always been a very strong player, but he himself knows well that he may not be the future of the team."