The Miners are on the lookout for a left-sided midfielder after Michel Bastos left the club at the end of last season as his loan deal from Lyon expired.
Schalke officials were hoping to sign Xherdan Shaqiri on a season-long loan from Bayern Munich, but the Bavarians eventually rejected the proposal.
As a result, the Miners have now turned their attention to Stuttgart starlet Ibrahima Traore, who has entered the final year of his contract at Mercedes-Benz Arena.
Stuttgart chiefs are not too keen on letting their star player leave the club, but with talks over a new deal breaking down, they have no choice but to cash in on him this summer.
Traore, 25, has been in fine form last season, scoring 3 goals and producing 6 assists 32 Bundesliga matches for the club.