The former Manchester City striker has been linked with a move away from Merseyside after a disappointing campaign which has seen him omitted from the squad during the latter part of the season.
But, Balotelli’s agent Mina Raiola insisted his client is going nowhere.
“We had talks with Liverpool and he will definitely stay,” he said.
Earlier in the season, Liverpool manager Brendan Rodgers suggested that he and Balotelli were struggling to adapt to each other’s way of working.
But Raiola feels the striker took those comments on board and has worked hard to try and fit it in with Liverpool’s pattern of play.
“I think Mario did (adapt),” Raiola said. “I can’t talk about Brendan Rodgers, obviously that is something for Brendan, but I think Mario did.
“I have spoken at various times to the club and they were happy with his input and professionalism. Obviously we have to improve the performance but I am really confident that will happen this year.”
Balotelli has scored once in 16 Premier League appearances after joining the club in a £16m deal from AC Milan last summer.