The German club will put their proposal to the European champions and, if given the go-ahead, Baros could be presented by Schalke within the next 48 hours.
Rudi Assauer, general manager at Schalke, told the Bild am Sonntag newspaper: "We have not yet spoken about all the figures (money) yet. But we want Baros for a year on loan and at the same time an option to buy for 2006.
"If we carry this off, it would be Schalke's biggest transfer of all time."
Liverpool are reported to be seeking in the region of £7million for Baros, however Schalke insist they cannot presently find such a fee and will ask for a year to come up with the funds.
Baros finished top scorer at Euro 2004 but then had a disappointing season in the Barclays Premiership. The 23-year-old scored just nine times in the league as Liverpool finished fifth.
According to Schalke coach Ralf Rangnick, personal terms have already been agreed with Baros.
"We have agreed everything with Baros and his agent," Rangnick said.
"Early next week, we will make moves towards Liverpool. He's top of my wish-list. He's fast and a goal threat."
Baros has played no part in Liverpool's Champions League qualifying matches so far, Rafael Benitez judiciously leaving him out to facilitate any possible transfer.
The move by Benitez would make Baros available for Schalke's matches in the competition this season.
Anything less than a sale won't make any sense. Baros has 2 years left on his contract and despite his questional attitude (at times), he is still an imense talent (for my money he's probably the best forward we currently have). I don't really want to see him leave, but if he does I'm glad that it could be abroad, but only for a fee. Why just have Schlake pay his wages for a year and then get him cheaper next year? Plus we need the extra cash as we'd need to buy a replacement, unless we hope to get say Owen on loan too (unlikely).
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