Leipzig is prepared to activate the midfielder's €10m release clause, and Ouedraogo is expected to sign a contract extending until 2029.
The Saxony club has successfully fended off competition from Newcastle, Frankfurt, and Chelsea for the 18-year-old's signature.
Ouedraogo had always expressed a preference to remain in Germany and be loaned back to Schalke for another season.
The current plan includes Ouedraogo participating in Leipzig's pre-season training, with a decision on whether he will be loaned back to Schalke in the 2.Bundesliga to be made later in the transfer window.
Earlier in the season, Bayern Munich showed significant interest in Ouedraogo but decided against pursuing the deal due to the high total costs, especially since he wouldn't join the team immediately and they needed funds to settle former head coach Thomas Tuchel's contract.
RB Leipzig's hopes of building further momentum with one of their brightest young talents have been dealt a significant blow after the club confirmed the full extent of Assan Ouedraogo's latest injury.
Schalke 04's rising star Taylan Bulut is attracting growing interest across Europe following a standout 2024 season.
