Di Canio, who scored 51 goals for the Hammers and was last seen in the Premier League managing Sunderland in 2013, said Balotelli's previous coaches handled him well.
"I’m talking as a coach,” Di Canio told Fox Sports Italia.
“I think at some point you have to realise what it means to play with your teammates, sharing good and bad moments and it doesn’t seem like he [Balotelli] is doing that.
“Many coaches have tried to change him. [Roberto] Mancini has been like a father to him, but even he won’t reunite with him at Inter.
“[Jose] Mourinho understood immediately, he’s good at understanding players, and he realised that he could change him. Now he hasn’t got anyone to rely on.
“He’s still young, he’s physically strong, and he’s an incredible athlete, but he’s never taken advantage of his great potential."
GETTY
Jurgen Klopp has rejected an offer to manager Marseille
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The German coach, a reported frontrunner to take over from Brendan Rodgers at Liverpool, quit Borussia Dortmund at the end of last season.
He was touted to take the helm at Anfield after Liverpool's disappointing 2014/15 campaign but Rodgers kept his position after showdown talks with club bosses.
And German newspaper Bild report that Klopp had an offer from Marseille but turned it down.
"It is correct that Klopp has rejected Marseille," Klopp's representative, Marc Kosicke, said.
"OM were really interested in signing him, but the time is not right yet for Jurgen to return to coaching."