Balotelli is closing in on a return to Italy, with a move to AC Milan expected to be completed before the end of the January transfer window after the two clubs agreed a fee.
And City believes that Guidetti, who has scored in his last two outings for the Elite Development Squad, can now make the step up.
The Swede has been placed on a new training programme by Roberto Mancini's fitness staff and is using a specially designed scooter in order to speed up his recovery from a knee injury.
Guidetti spent last season on loan with Eredivisie outfit Feyenoord and scored 20 goals in 23 league appearances.
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