The future of the 21-year-old Italian has been highly speculated in recent months, with Inter and AC Milan being linked with moves for the forward following dips in the player's career at the Etihad Stadium.
"Manchester City has no intention of selling him, on the contrary they want to grow together," said Raiola. "Of course he misses Italy, which is normal as his family and friends are there.
"I think that once Mario decides to return to Italy I think there will be a big derby for his services but right now is not the time. Perhaps in one or two years' time but now Mario has to grow and he will do so in Manchester.
"I've spoken to Balotelli and Roberto Mancini. There was a tense time between them but now it's all fine."