Italian football journalist Tancredi Palmeri revealed that Balotelli rejected the Black Eagles offer due to the political situation in Turkey following the failed military coup.
A source close to Besiktas however, told Turkish-football.com that the club were not willing to meet Balotelli’s wage demands.
Besiktas were targeting a move of Balotelli as a potential replacement for Mario Gomez but have been put off by his insistence on a salary in the region of €5-6 million and will not continue talks unless he accepts a lower fee.
The Daily Star report that Napoli and Ajax are now being linked with a move for the 25-year-old striker.
Balotelli has not been included in the Liverpool squad that travelled to the US for their pre-season summer tour and has been told to find another club.
Reds head coach Jurgen Klopp does not have plans for Balotelli next season. The 25-year-old striker scored just one Serie A goal for AC Milan last season.