The 23-year-old has emerged as one of the best central midfielders in Serie A this season.
Locatelli broke through the ranks at AC Milan as a teenager but quickly fell down the pecking order.
He moved to Sassuolo on loan in 2018 and has now started to reach his potential, breaking into Italy's national team last year.
With his contract running until 2023, Locatelli is expected to cost at least £30m.
Juventus have also been monitoring the exciting youngster.