Pay rises are expected to be pegged to 2%, in line with the government's policy on public sector deals.
Unions say this is a below-inflation increase and effectively represents a pay cut for teachers.
The National Union of Teachers has already voted to prepare for a one-day strike in the event of such an offer.
The government measures inflation by the consumer price index, which was running at 2.1% in November.
But unions prefer another measure of inflation, the retail price index, which includes costs like rent and mortgages - in November the retail index was running at 4.3%.
No headline figures for pay rises have been revealed ahead of the announcement but Mr Balls is expected to accept the recommendations of the School Teachers Pay Review Body, which advises the government.
Union pressure
The announcement will mark the first of a new round of multi-year pay settlements which the government is trying to agree with public sector workers in a bid to keep inflation down and help departments plan their budgets more effectively.
The current teachers' pay deal was announced in December 2005, when inflation was thought to be under control.
It offered 2.5% in September 2006 and a further 2.5% in September 2007. The next deal is due to cover the period from September 2008 to August 2011 and ministers told the review body to recommend a deal within the 2% inflation target.
But the government is coming under increasing pressure from unions over its 2% ceiling.
In December, police officers in England, Wales and Northern Ireland were awarded a 2.5% pay rise but the Police Federation claims it was effectively only a 1.9% rise because the home secretary refused to backdate it to September.
But the Scottish Government did agree to backdate the rise to September, as recommended by the Police Arbitration Tribunal.
The row has prompted the Police Federation to say it will ballot members in 2008 on whether they want the right to strike, as they are currently banned from doing so.
Nurses are also being restricted to a 1.9% rise.
We discussed teacher's and civil servant's pay earlier this week in the news part of the fofo, here's some news from our british enemy friends
