Everton fullback Jonjoe Kenny is set to move to Hamburg.
The 22-year-old has been a target for Burnley and Crystal Palace but Everton believe a season on loan in Germany can help Kenny develop further, says the Daily Mail.
Schalke are coached by former Huddersfield Town manager David Wagner and he is ready to give Kenny a chance to shine in his first team with a chance the deal could become permanent.
Everton also remain in talks with River Plate over a £13.2million deal for 20-year-old midfielder Santiago Sosa but obtaining a work permit remains an issue.