The 22-year-old is out of contract at the end of the season and has previously expressed a wish to play in the Premier League in the future.
He is a boyhood Everton fan, but reports over the weekend suggested Liverpool manager Brendan Rodgers wants to bring Holtby to Anfield.
Inter Milan have also been linked with the player, but Holtby's agent Markus Noack says no decision has yet been taken regarding where he will be next season.
"We are talking with Schalke about a possible extension for another three years," Noack told calciomercato.com.
"Talks are going well at the moment but the situation has definitely changed in the last period because several offers from Spain and England came in.
"Lewis is very good at Schalke but above all there is an English club which has made a very interesting proposal.
"My client will have to decide whether to continue to grow in Germany or to try a new experience at the end of this season.
"Inter Milan? We have not received any proposals from Italy and he would prefer [to play in] the Premier League and La Liga."
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