Itakura impressed on loan with Schalke last season and played a key role as the side earned promotion to the Bundesliga.
His strong performances caught the attention of the Hoops but they have plenty of competition for the centre-back.
Schalke themselves wanted to make Itakura’s loan permanent, while Eintracht Frankfurt and Hoffenheim are also in the race.
It is Borussia Monchengladbach who look to have emerged triumphant though as the defender is close to signing for them, according to German broadcaster Sport1.
The Japanese star is poised to sign a four-year contract with the German club and Celtic look set to miss out on him.
There are still however last details to be finalised, but with no twists the centre-back will become a Borussia Monchengladbach player.
Itakura will leave the Citizens having not made a single appearance for them while last season he took to the pitch 32 times for Schalke.
