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Striker ready for legal fight over 340,000 pounds club fine as Milan offer only chance of escape.
Mario Balotelli's broken relationship with Manchester City has reached the stage where the club have eschewed disciplinary guidelines agreed with the Professional Footballers' Association and Premier League to punish the forward for repeated on-field transgressions.
With the player likely to continue his action against the club should a Premier League tribunal find in City's favour tomorrow (Wednesday), the lack of potential buyers emerging for Balotelli next month has raised the prospect of a divisive legal battle between the two parties running into the new year.
And by pursuing their course of action, City also risk further damaging their relationship with the PFA, which is understood to have had limited involvement with the club during this process.
Gordon Taylor, the PFA chief executive, said: "We try to avoid situations like this wherever possible, but the player and club have not been able to resolve this situation."
Despite all Premier League clubs agreeing to sign up to a disciplinary code drawn up by the League and PFA, which penalises players financially on a rising scale for yellow and red cards, Balotelli has been fined a total of two weeks' wages, (340,000 pounds) for missing more than 20% of City's fixtures last season due to suspension.
City have applied the sanction, and issued an internal charge of misconduct, on the basis that Balotelli has breached his contract.
While City's action and internal disciplinary procedures are regarded as "unusual" by leading figures in the game, the club are understood to be confident that their sanction was valid and will be upheld by the Premier League.
The stand-off between club and player, with the parties taking opposing sides at the tribunal in London tomorrow, has hardened resolve at the Etihad to sell the 22 year-old in the January transfer window.
However, with Balotelli becoming increasingly isolated at City, the club could face difficulties in finding a buyer with only AC Milan showing a genuine interest.
Milan are expected to make a bid if, as expected, attempts to persuade former City forward Robinho to reject a lucrative move back to Brazil with Santos prove unsuccessful.
Inter Milan, who sold Balotelli to City for 24 million pounds in July 2010, no longer have the financial muscle to re-sign the player. However, Inter could finance a loan move should they sell Wesley Sneijder next month following a contract dispute with the Dutch midfielder.
With Balotelli taking his dispute to the Premier League after having an internal appeal rejected by City last month, the depth of the antipathy between player and club has become clear.
It is understood City began the disciplinary process following Balotelli's dismissal in the 1-0 defeat at Arsenal last season - the fourth red card of his career at the Etihad Stadium.
But while the PFA has advised Balotelli on the matter, the player has instructed his agent, Mino Raiola, and his Italian legal team to build his case against the club.
Relations between City and the PFA have been strained since the union blocked the club's attempts last season to issue Carlos Tevez with a fine of four weeks' wages, totalling pounds 792,000, after being found guilty of five counts of misconduct in relation to his refusal to warm-up during a Champions League fixture.
Then, the PFA stepped in to ensure that Tevez was fined only two weeks' wages - the maximum penalty allowed within the PFA's guidelines.
While the long-running battle between Tevez and City was resolved satisfactorily, with the player returning to the team in time to play a significant role in the club's first league title success since 1968, moves were made by both parties for Tevez to be transferred last January.
Balotelli's situation appears more complex, however. City manager Roberto Mancini, despite his decision again to omit the player from his squad for last Saturday's game at Newcastle, remains an admirer of the striker and believes he can, ultimately, put him on the right track.
Described as "unmanageable" by former Inter coach Jose Mourinho, Balotelli has few allies in the City dressing room, with many having lost patience with his attitude and contribution.
At board level, Balotelli is regarded as a magnet for controversy, a player whose behaviour reflects badly on the club and Abu Dhabi, while in his native Italy most clubs seem to have already learnt that Balotelli's talent is outweighed by his immaturity and his indifference to authority.
Italy coach Cesare Prandelli is expected to leave Balotelli out of his squad for the friendly against Holland in February because of his exasperation with the player, and the 'baggage' that accompanies him.
Prandelli's apparent abandonment of Balotelli is significant. The former Fiorentina coach coaxed the best out of the player at Euro 2012, but even his patience has evaporated.
AC Milan offer the best hope of a January exit strategy for Balotelli, with Robinho - Abu Dhabi's 32.5 million pounds statement of intent when signed for City from Real Madrid in September 2008 - central to their transfer plans.
Robinho is keen to return to Santos, but Milan are making strenuous efforts to keep him.
The likelihood is that Robinho will leave, however, with the injury-prone Alexandre Pato also expected to generate funds by signing for Brazilian club Corinthians.
Inter are understood to favour a move for Sao Paulo midfielder Paulinho ahead of Balotelli should they be able to offload Sneijder, and his 5 million pounds-a-year wages.
And with Paris St-Germain, backed by the Qatari royal family, seemingly out of the running having signed Zlatan Ibrahimovic from AC Milan during the summer, Balotelli's and City's option are limited.
As Tevez proved, there is always the prospect of an unlikely reconciliation at City, but Balotelli has already burned many bridges at the Etihad. His bigger problem is that he has burned a few that lead elsewhere too, so his future remains uncertain.
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