Fresh reports over the weekend suggested Milan were lining up a £20million move to bring former Inter Milan ace Balotelli back to Italy.
Balotelli's future at Manchester City has been the subject of speculation for some time with the 22-year-old finding himself out of favour at the Etihad Stadium.
Milan are thought to be in the market for striking reinforcements with Robinho and Alexandre Pato expected to move on in January, but Berlusconi is adamant Balotelli will not make the switch to the San Siro.
"I can assure you that Balotelli will not arrive," Berlusconi told Sky Sport Italia.
Berlusconi also ruled out a move for former Chelsea star Drogba despite being an admirer of the Ivory Coast international.
Drogba is seeking a move from Chinese club Shanghai Shenhua, but Berlusconi believes the 34-year-old is too expensive for the Rossoneri.
"Drogba? He is certainly a player we really like, but I think at that cost only the Arabian and Russian clubs can afford him.
"Who will arrive in January? I cannot say...
"Each time I talk about a player, the cost increases. Anyway there will be young players with perspectives for the future."
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