The two sides will meet in Group D on June 14 in the opening game of their respective campaigns, but Balotelli has dismissed suggestions that Roy Hodgson's side are direct rivals to Italy.
"I don't look at England as a team that can win the World Cup," the AC Milan forward is quoted as saying by the Daily Mail. "They have some good players, but they are no real rivals for Italy.
"I am not saying that Italy are favourites, but we have the mentality and experienced players to surprise people — I don't think England have that.
"We have players who have won the World Cup, I don't think England have a player who knows what it is like to play past the quarter-final."
Italy will also meet Uruguay and Costa Rica in the group stages.