Having scored a goal and played his part in City's 3-0 friendly defeat of the 20-year-old Italian's former club Inter Milan in a friendly in Dublin on Sunday, Balotelli then made the revelation to SkySport.
"I feel terrible in Manchester, I don't like the city," said the Italian of Ghanaian origin.
"Of course everything is fine with my team-mates and the coach but the city isn't to my taste.
"The only thing I can do is stay at home with my family and friends."
Balotelli has had an at times difficult first year in England since making a big-money move from Inter.
He initially struggled with injuries while he was also sent off twice but he scored a hat-trick in a 4-0 defeat of Aston Villa last December and won the FA Cup in May.
Although he admitted to being unhappy in Manchester, he moved to dampen speculation that he could be heading to AC Milan.
"My home town is Brescia, not Milan. Of course Milan are a great club and one day we could talk about (a move there)," he said.
"We'll see, for now I'm tied to Manchester but then we'll see."
Balotelli moved to Eastlands for a reported £24-million a year ago and despite his often petulant attitude, coach Roberto Mancini, who was also the 20-year-old's boss at Inter, has largely kept faith with him.
However, he did haul off the striker in a friendly against LA Galaxy a week ago during the first half after Balotelli wasted a one-on-one chance with the goalkeeper by trying to spin on the ball and back-heel it in.
Mancini accused him of not taking the match seriously but proved in selecting him against Inter that all was forgiven.