German newspaper Bild revealed on Tuesday that the 23-year old player has agreed a four-year deal and is set to arrive in Germany on Tuesday to complete the formalities.

Farfan will become the first signing of new coach Fred Rutten who took over after leaving Dutch side FC Twente.

'I accepted the offer from Schalke because I wanted to play in a more competitive league. I had offers from Tottenham and Fiorentina,' said the Peruvian ace.

Farfan had a glorious spell at PSV as he scored 52 goals in 115 appearances helping the Dutch giants win four Eredivisie titles.