Hoilett has played just twice for the R's this season, with both of his appearances coming in the Capital One Cup, and the London side are said to be happy to sell.
The R's boss is looking to create a young squad, and it seems that Hoilett has little part to play, with the rapid winger struggling to find his top form.
The Canadian born wide-man played 24 times for QPR last term, but he failed to hit the back of the net and it seems that he could be moved on in January.
If he does move to Schalke, he will join a club competing for a spot in the Champions League in the German top tier.
Andre Breitenreiter's side have made a bright start to the season, and currently sit in fourth place in the Bundesliga table, but they apparently feel that Hoilett could offer them an even greater attacking threat.