"Ali Karimi is on the verge of signing for Schalke. It's just a matter of wrapping up some formalities," Magath was quoted as saying by Bild.
"We have some problems to get the ball from midfield to attack at the moment. Karimi could really help us with that."
Karimi previously enjoyed a spell in the Bundesliga with Bayern Munich from 2005 until 2007. He never really managed to secure regular first team football at the Bavarians, but apparently did enough to impress then Bayern coach Felix Magath.
Schalke are also believed to be on the verge of signing former Greece international Angelos Charisteas. Several reports from Germany at the weekend claimed that the transfer is already sone, but Schalke have yet to confirm the deal on their official website.