The 19-year-old right-back, who can also slot into central defence or push forward on the right wing, has enjoyed a breakthrough campaign in the 2. Bundesliga with 22 league appearances, notching one goal and one assist.
A product of Bayer Leverkusen's academy, Bulut joined Schalke determined to find first-team football - and has done just that.
His rapid development has seen his market value skyrocket from 250,000 euros to 5 million euros over the course of the season.
Despite Schalke's hopes of keeping the Germany U19 international, a summer move looks increasingly likely. Bulut's contract includes a 6-million-euro release clause, a figure several suitors appear ready to meet or exceed.
Bundesliga outfits Stuttgart and Freiburg are both monitoring the situation closely. Freiburg, in particular, are understood to be willing to offer up to 8 million euros should they secure Champions League qualification.
Interest extends beyond Germany as well. Italian side Atalanta were linked with Bulut in January, and Austrian champions RB Salzburg remain keen.
Bayern Munich head coach Vincent Kompany has urged teenage midfielder Lennart Karl to play without fear as the youngster continues to develop his game at the highest level.
Bayern Munich have received a major boost on the injury front, with Jamal Musiala taking an important step forward in his recovery from a serious leg injury.
Bayern Munich coach Vincent Kompany has confirmed that young goalkeeper Jonas Urbig will start against Borussia Monchengladbach in the Bundesliga on Saturday, stepping in for Manuel Neuer.
Bayern Munich have made it clear that Michael Olise is not for sale, with sporting director Max Eberl confirming there is no release clause in the French winger's contract despite growing interest from top European clubs.
