Due to limited opportunities at Stamford Bridge, the 23-year-old looks set to make a return to the Royal Blues after injury cut short a similar loan spell with the side last season.
English outfits Everton and Newcastle United as well as Turkish clubs Galatasaray and Fenerbahce have all been linked to the injury returnee, who has been out of action after hurting a knee while playing for Ghana at the Africa Cup of Nations in January last year.
"We're on the home straight with Baba,” Tedesco told the media.
“He's due to undergo a medical here, but the deal is not complete yet.
“He got some minutes with the Chelsea reserves recently.
“We'll give him the time he needs, but the medical will reveal more.”
Baba was initially expected to be back in action after seven months, but a series of complications prolonged his time on the sidelines.
Last week, he achieved a significant milestone by playing the entire second half of Chelsea reserves’ 3-2 victory over Queens Park Rangers.
Chelsea manager Antonio Conte, meanwhile, say he is ready to give the Ghanaian a chance to fight for his place at the club when he regains full fitness.
Baba joined Chelsea in August 2015 but limited opportunities at Stamford Bridge warranted a move to Schalke after playing 15 league games in his first season with the Blues.