The Serie A newcomers recently sold star striker Gianluca Lapadula to AC Milan, prompting press outlets to link Balotelli with a move the other way.
However, Sebastiani says signing the 25-year-old former Inter Milan and Manchester City man, who has built up a reputation as something of a loose cannon, is not on the cards.
Balotelli has already been told by Reds boss Jurgen Klopp that he is not in his plans this season and has been relegated to training with the club's youth team.
Sebastiani told Premium Sport: "The name Balotelli gets brought up a lot, but Mario is a great player and the last thing I think he will do is come play for Pescara or Crotone.
" I know where we have to take action, but we also must remain patient and do our market. We don't have to bring in celebrities to please someone.
"We work too buy players who would best suit Pescara."
Asked about the club's targets, Sebastiani said: "We spoke with [David] Pizarro, but at Pescara he would have to occupy a spot for a foreigner. Nevertheless, he is a great player for his age.
