According to German outlet Kicker, Schalke are close to finalising a deal for the Portuguese youngster.
Camacho made his Premier League debut under Jurgen Klopp last season, but has bemoaned his lack of oppurtunities.
The 19-year-old had an outsburst on social media following an under-23s game where he was played at right-back.
"I'm not a right-back, I'm an attacker who scores goals, that's my DNA," he wrote on Instagram back in April.
He scored of 12 goals and provided 8 assists in 20 games for the Liverpool under-23s last season.
Since his public statement, Camacho has been heavily linked with a move to Wolves, especially given their substantial Portuguese contingent.
Benfica and Sporting Lisbon, where he started his career, are also interested, but Camacho believes Schalke offer the best pathway for him.
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