Manchester City have accepted a bid from Schalke for Rabbi Matondo.
The Telegraph says City have agreed a fee in excess of £11million to sell him to Schalke this month.
Matondo, 18, won his first senior Wales cap in a 1-0 friendly defeat to Albania in November, and his contract at City will run out at the end of next season.
That has created a stir amongst several clubs across Europe, but Schalke appear to have won the race for his signature.
Borussia Monchengladbach, RB Leipzig and Hoffenheim are all credited with an interest in Matondo, with AC Milan also making a late attempt to sign him.
But he seems to have chosen Schalke, who will face City in the last-16 of the Champions League next month.