A move back to Italy this month has been strongly rumoured with AC Milan seemingly leading the chase ahead of Inter Milan and Juventus.
But Manchester City have always stood firm, and despite the troubles with Balotelli have shown little willingness to sell.
Now Raiola has looked to put an end to the matter by confirming there are no talks about the Italy international's future with any club and that he will not be leaving the Etihad in January.
"There is no negotiation for Balotelli with any club, no meeting, zero. It seems like a Grimm Brothers' fairy tale," Raiola told Italian radio station GR Parlamento
"Manchester City won't sell Mario, let alone loan. There are zero chances he moves. But until January 31st, who knows."
He also denied that a price-tag has been placed on his head, continuing: "The €37million price? City has never asked for money because they never offered the sale of the player.
"The owners appreciate the player and don't want to sell him. Balotelli is very quiet, obviously he's not happy about not playing but is handling the situation in a different way than in the past, not like a rotten apple."
Raiola also played down Inter's first-option on buying their former player, insisting it had little value.
"The Inter Milan right of first option? There is an agreement between the two clubs, but it does not prevent the player choosing another destination," he added.
"The people who say that this agreement has no value, are right. However, I repeat, there is no negotiation ongoing."