Kabak was linked with a £13 million move to West Ham United.
Bild claims Kabak will spurn Bayern Munich to join their Bundesliga rivals, after West Ham and AC Milan 'played poker until the end'.
The Hammers were initially linked with the Turkey centre-back at the start of this month, shortly after his current side, VFB Stuttgart, were relegated back to the second tier.
And with his contract containing a £13 million release clause, according to The Guardian, Kabak could have been a bargain for Manuel Pellegrini's side.
West Ham, though, are unlikely to lose too much sleep over Kabak, who only moved to Stuttgart from Galatasaray in January, with Fabian Balbuena, Issa Diop, Angelo Ogbonna and Winston Reid among their existing centre-back options.
Schalke's manager, David Wagner, was linked with the Hammers job while in charge of Huddersfield Town.
Will West Ham rue not signing Kabak?
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