The Brazilian spent last season on loan at the Turk Telekom Arena and played a key role in the Istanbul side's charge towards the Super Lig title.
Both the club and the player had hoped to make the deal permanent, but Galatasaray were unwilling to meet Juventus' asking price, seemingly derailing the transfer.
However, as Goal.com exclusively revealed on Thursday, the move seems to be back on, with personal terms now settled, leaving the Turkish champions to negotiate a fee with their Italian counterparts.
"I have finally reached an arrangement with Galatasaray and I want to start preparing for the Fenerbahce game [on August 12]," Melo said according to Milliyet.
"I'm hoping that it won't take long for Galatasaray and Juventus to reach an agreement."
Melo made 36 appearances in the Super Lig last season, scoring 12 goals.
||WHO WILL TOP THIS YEAR'S LIST?