The Brazilian forward has made the decision to return to Germany on a temporary basis after just six months at Dynamo Kiev, with the Gelsenkirchen side struggling with injuries
The Gelsenkirchen side were keen to add some more creativity to their squad in the January transfer window, and they have now found their man in the former Hertha Berlin man.
The 27-year-old joined Dynamo Kiev ahead of the 2012-13 campaign, but had been struggling to secure regular first team action with the Ukrainian giants, and was keen to move on in order to get more playing time elsewhere.
"We decided to make one more move in the transfer market due to ongoing injury problems, for example Ibrahim Afellay's misfortune. We are very happy that the signing of Raffael is now a done deal," general manager Horst Heldt told the club's official website.
"We have a lot more options in attack now. Raffael will not need much time to adapt to the Bundesliga as he has already played in Germany for four years."
Raffael will not be eligible to play in the Champions League for Schalke after already participating in European club football's elite competition with Dynamo.