The Royal Blues have exercised a buy-back option to re-sign the 21-year-old following his exploits in helping Paderborn secure promotion to the Bundesliga in the just-ended season.
He made 32 league appearances in the Bundesliga 2, starting 23 of the matches, scoring 10 times and providing four assists.
"After a very successful season for SC Paderborn 07 in the 2. Bundesliga, FC Schalke 04 have activated a buy-back clause to re-sign Bernard Tekpetey from the newly promoted Bundesliga side," Schalke announced via their official website on Saturday.
"Tekpetey scored ten goals and provided six assists in 32 appearances in eastern Westphalia to help Paderborn secure back-to-back promotions.
"The Ghanaian will rejoin the Royal Blues on 1st July 2019 and the club hierarchy are currently discussing his sporting future at the club."
Tekpetey joined Schalke from Ghanaian side UniStar Soccer Academy in February 2016, making his first team debut against OGC Nice in the Uefa Europa League in November that year. He made two more appearances in the Bundesliga that season.
The following campaign, the Royal Blues handed the Accra-born player a contract extension before sending him out on loan to Austrian club Rheindorf Altach.
The expected season-long loan was, however, cut short after half of its planned duration. At the end of the season, Schalke cut ties with him, selling his contract, which included a buy-back option, to Paderborn.
An impressive first campaign in the lower division has seen Schalke promptly exercise their right.
Tekpetey's promising showing for Schalke earned him a spot in Ghana's squad for the 2017 Africa Cup of Nations in Gabon. He is currently a member of Ghana's U-23 side.