The 21-year-old, who drives a Bentley, was in collision with another vehicle in Medlock Street, near Deansgate.
Balotelli is understood to have been unhurt in the incident but a passenger from one of the cars was taken to hospital as a precaution.
A statement from Greater Manchester Police read: "Shortly after 3.15pm on Thursday 5 April 2012, police were called to Medlock Street, Manchester City Centre to reports of a collision between two cars.
"The passenger of one of the cars was taken to hospital for precautionary measures.
"Inquiries are ongoing."