Reports surfaced last week that the 20-year-old had penned a deal at the non-league club, who are ninth in the Northern Premier League First Division North.
But his agent, Giorgio Timpani, insists Balotelli is only training with Salford in preparation for trials at other English clubs, thought to be in League One and Two.
Timpani told Sky Sports of the youngster, who spent time on trial at Stoke, Sunderland and Watford last season: "It is not correct that he has signed for Salford. He is simply training with them to keep fit.
"It's something that Mario arranged for him in preparation for forthcoming trials that our English partner Dan Fletcher is in the process of organising for him."