Holtby was to move to Tottenham when his contract with the German side expired in the summer.
However with Sandro injured, the English side were keen to tie up the move earlier and have now agreed a fee with Schalke to sign him now.
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The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.
Five English clubs will compete in the last sixteen of the Champions League for the first time ever as Liverpool, Manchester United, Manchester City, Chelsea and Tottenham face some difficult away matches.