Reports have suggested the two clashed in the tunnel at half-time during the 3-3 draw with Sunderland, the first time the club had dropped points at home all season.
Toure maintains that there was no exchange during the half-time interval and that he and the controversial Italian have a good working relationship.
He told The Daily Mail, "They said I fought with Mario (Balotelli) at Swansea and against Sunderland. That shocked me.
"It's just not true. It didn't happen. I am a footballer, not a boxer. People don't know my relationship with Mario. He's not my friend, he's my brother and I love him. To say we had a fight is very sad. It upset me and I feel sorry for Mario. He suffers most from these things.
"At half-time against Sunderland it was very difficult. We are trying to win the league and are losing 2-1. It's not good. But everybody was quiet. We were just looking at each other, trying to find a way to turn the result.
"But I didn't even talk to Mario. The next day he sent me a text message saying, 'Apparently we had a fight'. I just want to stop people writing and thinking that."
Balotelli’s fledgling career in the Premier League has been dogged by a number of off-field incidents and he was involved in an on-the-pitch confrontation with full-back Aleksandar Kolarov over who should take a free-kick during the stalemate with the Black Cats.
"The decision is down to the club," added the powerful Ivorian.
"But I want him to stay. He will have more experience in the future and get more things right.
"I don't know what goes through his mind sometimes and I do get upset when he does something wrong. He has to understand he plays for Manchester City and he has to be professional.
"Mario is a fantastic player and person but his big fault is in his character and behaviour with people. We talk about that."
