The 25-year-old spent the second half of last season on loan at Newcastle and made 12 appearances in the Premier League for the Magpies.
Newcastle had an option to make the move permanent for a fee of €10m, but the club decided against triggering the clause and chose to let him return to Schalke.
According to German magazine Kicker, Newcastle are hopeful that they could snap up Bentaleb for less.
Schalke need to bring in funds this summer and with Bentaleb out of favour at the club, are looking to offload him.
His contract only has a year left to run and Schalke are unwilling to loan him out again as a result.
It has been claimed that Schalke could be forced to accept a fee in the region of €5m to €6m for the 25-year-old midfielder this summer.
Newcastle could end up still signing the 25-year-old and may pay just half the previously agreed purchase option price.
Schalke signed Bentaleb for €20m in 2017 after he impressed on loan from Tottenham Hotspur.
