Pjaca made 20 appearances for Juventus in all competitions last season until he suffered a ligament injury in his right knee during a friendly for Croatia against Estonia in March.
Although he has recovered from the injury, the 22-year-old has not been able to regain his place in the Serie A team.
Schalke are second in the Bundesliga, 11 points behind leaders Bayern Munich.
(Writing by Brian Homewood in Bern; Editing by Amlan Chakraborty)
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