The deal would enable the German cup holders to loan promising youngsters to the Belgian club allowing them to accumulate valuable experience. The Royal Blues would also be given first refusal on members of the Westerlo squad.
"We would be mad not to listen to this offer," said Westerlo coach Jan Ceulemans.
"Players who are not quite good enough for a huge club like Schalke could still be extremely useful for Westerlo."
The Bundesliga runners-up already have three Belgian internationals on their books in the form of Emile Mpenza, Sven Vermant and Nico van Kerckhoven.
