Southampton have submitted a €22 million offer to Schalke for 21-year-old midfielder Weston McKennie, according to Bild.
The Bundesliga club are holding out for a fee closer to €25m but may be open to selling the American just below their valuation. Schalke have to sell in order to sign new players.
Hertha Berlin have also shown interest in McKennie, who has a preference to join a Premier League club. A good relationship between Southampton manager Ralph Hasenhüttl and S04 sporting director Jochen Schneider could advance negotiations.