Balogun is on loan at the French Ligue 1 side for the season from Arsenal and has been tearing up the top flight.
Balogun is the joint topscorer in Ligue 1 this season with 15 goals from 23 appearances, ruffling feathers with the likes of Kylian Mbappe and Jonathan David for the goal king award.
The England u-21 international, who is also eligible to play for Nigeria and the United States of America, is due to return to Arsenal at the end of the season.
Caillot does not believe Reims will be able to retain the services of Balogun for another season following his productive loan spell as his talents will be better suited at a club with bigger ambitions.
“I think [signing him permanently] is impossible,” Caillot told France Bleu.
“The rules of the game are clear: these are boys that, when they join us, know that they’re here to improve and that it’s a step for them. So even if I’m not deciding for him, either Folarin will return to his club to have his chance, he’s loaned out, or transferred to a very big club.
“He is a player that should go even higher. So obviously we’ll ask him if he feels good here, and at his club, but I think that now, he will need to take a step up. We are already working on life after Balogun, the day when he will leave our club. But if he and the club are open to another year at Reims, we’ll do everything to make it happen.”
Reims are 10th on the Ligue 1 standings.
