The 19-year-old has been linked with a move to both Old Trafford and Eastlands for several weeks, with the player's agent Mino Raiola admitting that both Sir Alex Ferguson and Roberto Mancini were keen on recruiting the temperamental Italian.
However, the pair could now also face competition from former AC Milan manager Carlo Ancelotti, who is reportedly eager to play the youngster alongside Didier Drogba at Stamford Bridge.
City appear to be the current favourites to secure Balotelli's signature, with Mancini having worked with the frontman during his time in charge at the San Siro.
And former Liverpool boss Benitez has insisted that he would have no problem should president Massimo Moratti decide to cash in on the talented teenager, if either United, City or Chelsea come calling.
"Balotelli? Lets wait and see what happens. The club decides the transfer market and I adapt. The fact remains that one player doesn't make the team, and Inter have plenty of strong players," he told La Gazzetta dello Sport.
The player himself has hinted that he would be open to a move to either Old Trafford or Eastlands, but added that he leaves all talk about his future to his agent, telling Corriere dello Sport:
"I want to do well in the coming campaign, because I don't think we've seen the real Balotelli, the one who can target the Ballon d'Or.
"When I talk about my future I always say 'I don't know' because next season I want to play consistently. I need that."
"I cannot be considered valuable and yet never play. To know more, ask my agent. In any case, if Manchester City and Manchester United want me, I can't be that bad."
Ancelotti recently ruled out a move for injury-plagued Liverpool forward Fernando Torres, with Balotelli now believed to be the Italian's top target as he bids to retain the Premier League title and secure a first Champions League crown for the Blues.
