City boss Roberto Mancini is considering dropping the forward following his "stupid" sending off in Thursday night's Europa League game against Dynamo Kiev.
Balotelli on Friday issued a formal apology to his team-mates for the costly red card, earned for planting his studs into the chest and thigh of Dynamo defender Goran Popov.
It remains to be seen whether the 20-year-old's contrition proves enough for him to keep his place but Ancelotti hopes not.
"He's a fantastic player so I'd prefer him to stay out," Ancelotti said.
"Technically, he's one of the best players out there."