Mancini was involved in a training ground bust-up with the controversial forward on Thursday, the pair having to be separated after the City boss reacted angrily to a poor Balotelli challenge on Scott Sinclair.
It is the latest in a long line of disciplinary issues surrounding the 22-year-old - both on and off the pitch - since his arrival from Inter Milan in 2010.
His manager has continually backed him throughout, though this latest incident appeared to put his City future in severe doubt.
Mancini was quick to play down the clash at a press conference on Friday, insisting it was "nothing" and there would be no further action taken.
However, he did fire a warning to the Italy international, saying that if he does not change his ways he could fail to realise his enormous potential.
"I think he should understand the career of players is very short," said Mancini. "He is 22 - three, four or five years can pass in one second.
"I hope that the days arrive that he can understand that he can't leave his quality like this.
"I hope for him - also if he did a lot of mistakes - he can change."
Mancini also played down the potential damage to City's reputation following this latest bust-up and is confident his stance over Balotelli is supported by the club's owners.
"They always support me and the team," he added. "I think they are like me, they hope that every day Mario can change and think only to play, think about his job.
"What I hope every day is that he changes his mind and thinks about his job and his life."
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