By London correspondent Tony Hughes

Nabil Bentaleb has passed a Schalke medical and will be unveiled as the club’s new signing on Thursday, according to a report.

German publication Bild claim midfielder Bentaleb will join the Bundesliga club from Tottenham on a loan-to-buy deal.

It is said that the terms of the deal have been agreed for Schalke to take Bentaleb on loan for the season with view to a permanent £16.2million transfer next summer.

The central midfielder, 21, has already completed medical tests with Schalke after giving the green light to the transfer.

The report comes after French newspaper L’Equipe claimed Spurs agreed the terms of the loan-to-buy transfer with the Bundesliga club following a breakthrough in talks on Tuesday.

It has been widely reported that Tottenham would only consider permanent offers for the Algeria international, but it now appears that chairman Daniel Levy has accepted a loan move.

Mauricio Pochettino has revealed that he has told the 21-year-old there is no place for him at White Hart Lane after the arrival of Victor Wanyama and the emergence of England stars Eric Dier and Dele Alli.

That alerted Schalke who are seeking midfield reinforcements after selling German international Leroy Sane to Manchester City and losing last season’s loanee Pierre-Emile Hojbjerg to Southampton.

Football Insider revealed in July that manager Mauricio Pochettino was ready to sanction the sales of Bentaleb, Nacer Chadli, Clinton N’Jie, Alex Pritchard, Tom Carroll, Federico Fazio and Michael Vorm.

Bentaleb made just five Spurs starts in an injury-hit campaign last season after falling behind Dier, Mousa Dembele and Ryan Mason even when fit. He was not played for the club since February.

Pochettino has subsequently signed Wanyama from former club Southampton to increase the competition for central midfield spots even further and one of the shining lights of the 2014-15 campaign is now set to head out of White Hart Lane.

The Algerian midfielder failed to make the match day squad in Tottenham’s season opener against Everton, with youngsters Cameron Carter-Vickers, Joshua Onomah and Harry Winks in the side ahead of him.

He was also omitted from the squad for the 1-0 win over Crystal Palace on Saturday.

Bentaleb signed a new five-year deal last July on vastly improved terms and is said to earn more than Harry Kane and Dele Alli, who both had outstanding seasons and were named in the PFA Team of the Year.

In other Tottenham transfer news, they eye an emerging Ligue 1 star while Arsenal are also interested.