The 25-year-old was allegedly caught breaking the 40km/h speed limit while driving his Lamborghini on via Branze, the Brescia edition of Corriere reported on Monday.
He had reportedly been returning home after a training session and an afternoon with friends.
Balotelli returned to San Siro in late August on a season loan after a lacklustre year with the English club, Liverpool.
He now faces a fine of between €531 and €3,313, in addition to losing his licence for up to one year, Corriere reported.
The incident comes just four months after Balotelli was slapped with a 28-day driving ban and £800 (€1,092) fine after being caught speeding in his Ferrari on a motorway in Merseyside, north-west England.
Determined to prevent the flamboyant Balotelli's wayward antics upon his return to AC Milan, bosses inserted a code of conduct – based on rules applied to those serving in the Italian Air Force - into his contract, Gazzetta dello Sport reported in late August.
The clause reportedly included a ban on attention-grabbing hairstyles, partying and locker-room pranks.
He was also placed on a diet after returning to the club overweight, AC Milan's new coach Sinisa Mihajlovic said on Sunday.