Arsenal have reportedly agreed to cancel the contract of defender Shkodran Mustafi.
The Germany international's deal was due to expire during the summer, leaving him free to hold discussions with foreign clubs ahead of a free transfer.
However, according to Sky Deutschland, the 28-year-old is in line to make the switch to Schalke later on Monday.
The report claims that the Gunners board have agreed to mutually terminate Mustafi's deal at the Emirates Stadium to facilitate a transfer back to his homeland.
Schalke have identified Mustafi as a replacement for Ozan Kabak, who is expected to sign for Liverpool on a loan deal.
With Schalke sitting nine points adrift of safety in the Bundesliga, Mustafi is unlikely to pen a long-term contract.
