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Fabian has one year left on his contract and it seems the Bundesliga club prefers to sell him now, rather than letting him go for free next summer.
Reports in England said Schalke are prepared to offer Loftus-Cheek regular football, after the closure of the Premier League transfer window.
David Alaba tangled with Eintracht's Danny da Costa and it was feared he had suffered ligament damage.
Bayern Munich started the season in style with a 5-0 win in the German Cup with Robert Lewandowski and Arjen Robben the standout performers.
Bayern Munich manager Niko Kovac says he's proud his club does things different from Premier League clubs as transfer fees keep rising.
Bayern Munich coach Niko Kovac has insisted Premier League clubs' spending does not guarantee trophies, adding "we do it differently here."