Milan have been linked with a move for the Italy international for some time, with speculation first surfacing shortly after Balotelli left the Rossoneri's arch-rivals Inter for England.
Berlusconi has spoken positively of the fiery frontman in the past, suggesting he would be open to the prospect of taking Balotelli back to Serie A.
He has now altered that stance, claiming the 22-year-old would bring too much baggage with him to justify a sizeable transfer fee.
Berlusconi told Radio Radio: "Balotelli, as I have said on other occasions, doesn't convince me as a man."
With Balotelli seemingly out of the picture, Berlusconi has also responded to reports linking Milan with approaches for a number of other strikers - including Roma's Mattia Destro and Pablo Osvaldo and former Chelsea forward Didier Drogba, who is now turning out for Shanghai Shenhua.
He added: "Destro and Osvaldo? I would certainly take Destro at Milan, while Osvaldo does not fit within the age parameters we have set out to build a young team.
"The same goes for Drogba. He is 34 and would not fit in with our young player approach."