Coulibaly is a product of the Paris Saint-Germain academy and joined Dortmund in the summer of 2021.
The 19-year-old centre-back is a regular in Dortmund’s youth side and has made two senior appearances for the German outfit.
Burnley, who earned promotion to the Premier League last season under Vincent Kompany, want to strengthen their squad to keep themselves up next season.
Kompany is also keen to introduce quality and depth in the centre-back role and he has eyes on Coulibaly.
Now it has been claimed that Burnley have agreed a deal with the German giants to take Coulibaly on a season-long loan with an obligation to buy.
Burnley will have to pay a fee in the region of £15m to make the move permanent in the summer of 2024.
Coulibaly has represented France’s Under-20 team two times and has experience playing in the Champions League for Dortmund.