Manchester City manager Pep Guardiola confirmed on 21 July that he wanted to sign Leroy Sane.
The 20-year-old helped Germany reach the semi-finals at Euro 2016, having made his international debut in November.
He told Schalke sporting director Christian Heidel earlier this summer that he wanted to leave the club, according to German media.
Sane, a product of the youth system at Schalke, made his senior debut for them in April 2014.
He scored eight goals in 33 Bundesliga appearances last season as Schalke finished fifth, missing out on Champions League qualification for the second year in a row.
