The 2006-born protege has already been promoted into the first team after nine years in the club's academy and has featured regularly in the second tier of German football this term.
A 6ft 3in central midfielder who is also comfortable playing on the wing, Ouedraogo has made nine 2. Bundesliga appearances in the current campaign, scoring on his senior debut in a 5-3 loss to Hamburg.
That strike made Ouedraogo the youngest goalscorer in Schalke's history at 17 years and 80 days, breaking the record set by Julian Draxler, while he is also the youngest-ever player to make a competitive appearance for the club.
Prior to his senior breakthrough, the 17-year-old came up with nine goals and 12 assists in 23 games at Under-17 level, before amassing seven goals and two assists for Schalke's Under-19 squad.
Six of Ouedraogo's nine league appearances this season have come from the first whistle, and the midfielder also shone for Germany's Under-17s during their run to the European Championship title this summer.
Playing five of his nation's six games at the tournament Ouedraogo registered one goal and one assist and completed 90 minutes as Germany overcame France on penalties in the final.
Ouedraogo's contract with Schalke does not expire until the summer of 2027, but the 2 Bundesliga outfit may be powerless to prevent their protege from making a marquee move to a big-name club in the near future.
Manchester United and Chelsea are both rumoured to be monitoring Ouedraogo's performances, and according to Calciomercato, Liverpool are also casting a watchful eye on the youngster.
Jurgen Klopp oversaw a significant midfield revamp in the summer, as Ryan Gravenberch, Wataru Endo, Dominik Szoboszlai and Alexis Mac Allister arrived to replace the outgoing Naby Keita, Jordan Henderson, Fabinho and Alex Oxlade-Chamberlain.
The Reds could still be in the market for more engine room enforcers next summer, as Thiago Alcantara - who is yet to make an appearance this season due to injury - is in the final year of his contract.
Sporting director Jorg Schmadtke's German connections could also benefit Liverpool in their pursuit of Ouedraogo, who could be available for as little as €7m (£6.1m) despite a €20m (£17.5m) release clause in his contract.
However, Liverpool, Man United and Chelsea are said to be facing intense competition from Bayern Munich, RB Leipzig and AC Milan, the latter of whom have already presented a proposal to Ouedraogo's camp.
The Rossoneri have supposedly promised Ouedraogo that he could come into consideration for a first-team place within a couple of years following a loan spell elsewhere, which the midfielder would be keen on.
Nevertheless, Milan will wait for the green light from Ouedraogo's family before making an official approach to Schalke for his services.