Kaka won the Serie A title, Champions League, Supercoppa and the Club World Cup during a successful six-year spell in Milan, being awarded the Ballon d'Or in 2007 before joining Real for €68.5 million (£57.5m) in 2009.
Quoted on Gazzetta.it, Berlusconi told Sky Italia: "As a fan I have always dreamed of his return.
"Not just because he is a great player but because he is a great man and he has always been in our hearts."
When asked if Milan could persuade Manchester City to part with Balotelli for six sizeable instalments, as has been suggested in the Italian press, Berlusconi added: "Frankly, I don't know."
Milan climbed into sixth place in the Serie A table with a 2-1 victory over Bologna yesterday and head coach Massimiliano Allegri remains cautiously optimistic that Kaka could arrive in time to boost a late challenge for the Champions League places.
"It's not definite that Kaka will come so we have to wait for that," he told acmilan.com. "If he comes, the technical level of the team will rise without a doubt."
City manager Roberto Mancini has consistently maintained that he has no intention of selling Balotelli.
Balotelli has been at the centre of a number of controversies during his time at Eastlands but after a training-ground bust-up with Mancini this month, the manager said he was prepared to give him "another 100 chances".
When asked about the transfer speculation concerning Balotelli, Mancini said: "No, it is not true. I am very, very happy (with Mario)."
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