The Bundesliga side, currently in sixth place, has signed the Brazil winger on a loan deal that will see him join the club from Ligue 1 outfit Lyon until the end of the season.
Goal.com exclusively revealed last week that the two clubs were in talks over the possible transfer of the Brazil interational, and the move has now been confirmed.
“We are very happy that Michel Bastos has signed for us," Schalke sporting director Horst Heldt told the club's website. "He is an experienced international player who has special abilities and can help us immediately. He is also eligible to play in the Champions League. "
Bastos has featured 12 times in Ligue 1 this season, scoring five goals in the process.