According to Tribuna Deportiva, Schalke have identified the 25-year-old as a defensive target after his impressive loan spell at 1. FC Köln last season, where he made 25 Bundesliga appearances and left a strong impression on German football, even though Köln ultimately chose not to trigger their roughly €2m purchase option.
Özkacar remains under contract at Valencia until 2028, but the Spanish club intends to let him leave, with a loan including a buy option currently the preferred structure for any deal.
A decision is expected relatively soon: the left-footed defender has not travelled with Valencia's squad to their training camp in Girona and is instead training individually back in the city, a clear sign that his departure is imminent.
Schalke face direct competition from the other two clubs promoted alongside them to the Bundesliga, SC Paderborn and Elversberg, both of whom have also registered interest in the nine-cap Turkey international.
Özkacar's game is built around composed passing and good positioning, though he carries some weaknesses in terms of pace, and he joined Valencia from Lyon in the summer of 2023 without ever fully establishing himself in Spain.
Schalke currently have four recognised centre-backs on their books in Mertcan Ayhan, 19, Hasan Kurucay, 28, Nikola Katić, 29, and Timo Becker, 29, but head coach Miron Muslic wants at least one more, with question marks remaining over whether Ayhan can be kept at the club following a strong breakthrough season.
Schalke's real preference remains Brighton's Igor Julio, though that pursuit has dragged on for some time and now faces fresh competition from PAOK Salonika, making a deal for the Brazilian financially difficult given the two clubs are believed to already have personal terms broadly agreed.
Özkacar would represent a significantly cheaper alternative for a club still working to complete its defensive rebuild ahead of the new Bundesliga season.