The Italy international, who impressed with the Azzurri at the Euros this summer, had attracted interest from abroad and reportedly turned down possible moves to the Premier League.
Locatelli was set on Juventus and the Bianconeri have been discussing a possible deal with the Neroverdi all summer.
La Gazzetta dello Sport reports the two parties have reached an agreement at €35m, but that Sassuolo asks Juventus for a loan deal with an obligation to buy.
The Old Lady, however, wants the permanent transfer to be linked with the Champions League qualification.
The newspaper believes Locatelli is now close to joining the Serie A giants and that the two teams have agreed to make a decision after August 15.
The Juventus management met with Sassuolo CEO Giovanni Carnevali on Friday and the latter analysed the offer from Turin in detail.
Juventus changed and reduced the loan deal from two years to only one and the player’s value is set at €35m.
The two parties will, according to the newspaper, meet again next week, and Juventus could still include some of their youngsters in a possible exchange deal.
La Gazzetta dello Sport reports Locatelli and Juventus have already reached an agreement regarding the midfielder’s terms at the Allianz Stadium.
As soon as there’s a handshake between the two clubs, the former Milan youngster will thus be able to join Juve immediately and the Old Lady will switch their priorities to renew with Paulo Dybala.