The 28-year-old Holland international has repeatedly expressed an interest in moving to the Gelsenkirchen club, where former Twente coach Fred Rutten recently took the reins.

And Twente have now revealed the clubs have agreed a fee for Engelaar.

"It is a pity that Orlando is going but we must stay realistic," Twente chairman Joop Munsterman told the club's official website.

"He has had two excellent years at FC Twente, played at Oranje and had a fine Euro 2008.

"It was his absolute wish to leave for Schalke so it is impossible to keep a player for longer.

"Above all, Schalke were prepared to pay us the asked for transfer fee," he added.

Engelaar started all four of Holland's Euro 2008 matches as the Oranje reached the quarter-finals in Austria and Switzerland.