The 29-year-old is understood to have not returned to Brescia training since the coronavirus restrictions were eased in Italy, enabling Serie A clubs to resume restricted training.
According to Italian reports, Balotelli and Brescia president Massimo Cellino had a row after the forward failed to return to training, with the club since offering a consensual termination.
Balotelli allegedly declined the termination offer, before the club followed up with a letter to his lawyer stating that the contract would be ended.
Corriere di Brescia have reported that the 36-time Italy international had presented a medical note to the club last week excusing him from training for six days due to a stomach bug.
Balotelli, whose career includes stints at Liverpool, AC Milan, Manchester City, Inter Milan and Olympique Marseille, joined his hometown club Brescia in August last year on a three-year contract.
Brescia boss Diego Lopez said he felt let down by Balotelli who had also been absent during the coronavirus lockdown period from team meetings on Zoom.
“I thought that by playing in his own city he could give so much,” Lopez told Corriere della Sera.
“He had so much to give but he should have done a lot more. These are the facts. So it’s normal I’m disappointed. I’ve spent a lot (of energy) on Mario but I wanted and demanded the same from him.
“The team took one path and he has taken another. During the quarantine, we haven’t seen him on Zoom. Even if he says he is well, he is not at the level of his teammates.”
Brescia are currently bottom of the Serie A table, with just 16 points from 26 matches, with Balotelli contributing five goals.