Arsenal are reportedly keen to bring 23-year-old left back Sead Kolasinac to the Emirates next summer, according to Italian website TuttoMercatoWeb.
The Bosnian's contract is set to expire in June, which means Arsenal could begin negotiations with the player regarding a summer move which could see Kolasinac move to North London on a free. However it is also reported that Serie A champions Juventus are interested in the player.
The former Hoffenheim defender has made 12 league appearances for Schalke this season, scoring on two occasions.
It is unclear whether Kolasinac would be brought in as a first team player or back up to current left back Nacho Monreal.
Spanish international Monreal has established himself as first choice left back at the Emirates, despite initially competing with Kieran Gibbs for the position.
Arsenal have been linked with a number of players this window including Torino striker Andrea Belotti and PSG midfielder Grzegorz Krychowiak.
The Gunners currently find themselves in fifth place after 20 league games this season and are a point off fourth placed Manchester City.
Arsene Wenger's men travel to Swansea on Saturday afternoon hoping to claw back the deficit to leaders Chelsea, who they trail by eight points.
6 - Sead Kolasinac has been directly involved in the most goals (6, 2 goals and 4 assists) among the defenders in the Bundesliga 16/17. Push— OptaPaolo (@OptaPaolo) January 11, 2017
Theo Walcott scored a brace when the sides last met in October in a game that saw Arsenal prevail 3-2 against the team from south Wales.
The Gunners are still competing on three fronts this year having successfully steered clear of an FA Cup upset against Preston. However Arsenal face a much more daunting task in the next round of the Champions League when they face Carlo Ancelotti's Bayern Munich.