Reports in the Italian media had suggested the former Manchester City and Inter forward would be allowed to depart San Siro, with Berlusconi allegedly planning to offload the 23-year-old during the January transfer window.
Balotelli has previously been linked with a move back to England, with Chelsea thought to be among his suitors.
But the Serie A club have strongly denied claims he will be sold and insist there are no plans to allow Balotelli to leave.
A statement on the club's official website read: "AC Milan denies absolutely and vehemently the statements that have been attributed to the president of Milan about a possible placement of Mario Balotelli on the market."
The Italy international joined Milan in last January's transfer window, bringing an end to a three-year stay at the Etihad Stadium.
Balotelli notched 12 goals in 13 league appearances for Massimiliano Allegri's side last season and has six in 12 in the 2013-14 Serie A campaign.
Milan have endured a frustrating season and are 13th with 19 points from 17 games.
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