The South Americans head into the encounter needing a victory in order to join Costa Rica as Group D's representatives in the last 16 of the competition.
Recoba, who played for Uruguay and Inter Milan, says it could be decisive that his compatriots strike a balance between wanting to win and combating the former Manchester City marksman.
"There is a loose cannon in Balotelli," he told La Gazzetta dello Sport.
"They tell me that he never maintains a whole season at a high level, but the problem is that everything is decided for us in 90 minutes.
"If Balotelli steps out there on the right foot, in a single game he can send anyone into a tailspin."
Tuesday's clash in Natal kicks off at 5pm.