Promising young footballers are to be given a pathway to the Bundesliga, with Sydney Olympic on the cusp of a historic youth development deal with German giants Schalke.

The club that produced Manuel Neuer, Mesut Ozil, Benedikt Howedes and Julian Draxler could soon be heavily involved in the development of some of Sydney's best young talent.

Fairfax Media understands the semi-professional NSW Premier League 1 club is to announce a partnership with the seven-time German champions in a matter of weeks, providing junior players with exposure to one of the best development clubs in world football.

In a season when Sydney FC and Western Sydney Wanderers unveiled their youth academies, it is a former National Soccer League club that may become the most attractive destination for young players.