The 39-year-old returned from a business trip to the Far East yesterday and was spotted in a hotel in Schalke chairman Clemens Tonnies' home town of Rheda-Wiedenbruck, where official negotiations were held this morning.

"It is all about finding out what conditions exist and how we can achieve things there," Kahn told the Spiegel magazine.

"I have had several talks with Schalke. Whether it works out depends on many different factors."

Kahn met with Tonnies at 10am today and, although no agreement was reached, the Schalke chairman appears confident a deal can be struck with the former Germany goalkeeper.

But he revealed the club have not ruled out other options.

"We are still looking around the market," he said after emerging from the talks.

"We have agreed that we will call each other again in two to three weeks.

"Kahn is a great guy and we are completely in agreement. We have discussed a plan and everything fits together.

"However, we still want to talk with other candidates."

Kahn now seems braced for a return to football with the Gelsenkirchen club, who have been without a general manager for 10 days since Andreas Muller was fired.

Coach Fred Rutten is currently fulfilling both duties until a new man is appointed.