AC Milan vice-president Paolo Berlusconi, younger brother of the club president Silvio, mouthed off at a political meeting in Monza near Milan.
Paolo Berlusconi was attending a rally for a candidate for his brother's right-wing People of Freedom party when he made the comments.
He said: "Okay, we are all off to see the family's little n****. He's a crazy head. All the young ladies are invited as well - you can even have a chance to meet the president (Silvio Berlusconi)."
Italy international Balotelli joined AC Milan from Manchester City on transfer deadline day last week and scored twice on his debut against Udinese at the weekend.