The Italian forward has been linked with a move away from the Etihad Stadium but Mancini admits that he hopes that the 22-year-old remains at the club to prove his "quality" in the final few months of the season.
Mancini told reporters: "First of all, Mario should work well and try to get his place in the team.
"At the moment he doesn't have that, for many reasons. I hope he can help us to win some trophies because he has quality. Until today, his performances were so-so.
"But at the same time he can improve. Maybe in the next four months we could have crucial games for Premier League and the FA Cup. I hope Mario can help the team to win games."
Balotelli has scored just four goals for Manchester City this season.