The 21-year-old defender spent the latter half of last season on loan at Liverpool, but the Reds decided against taking up the option to sign him permanently for £18m.
With Schalke relegated to the second tier of German football, the club are intent on cashing in on Kabak and have been awaiting offers.
Kabak has admirers in the Premier League, with Newcastle and Tottenham Hotspur both linked.
But it has been claimed Newcastle’s interest in him is unlikely to materialise into a concrete move.
He is admired by the cub’s recruitment department but they believe he is out of their price range.
It has been suggested that Newcastle feel they do not have the funds to meet Schalke and Kabak’s financial demands this summer.
The Magpies are expected to pursue other attainable and more affordable options in the market, and it remains to be seen where Kabak ends up.
