The 24-year-old joined the Nerazzurri from Hertha Berlin last summer, but after a disappointing first half of the season he was loaned out to Newcastle United in January.
The English side opted against making his move permanent, but Sky Sport Italia reports he won’t be featuring for Inter once the new season begins.
Gladbach have emerged as favourites to land Lazaro in what is expected to be a loan deal with an option to buy at the end of the campaign.
RB Leipzig are also said to be in the mix.
Lazaro was limited to just 11 appearances for Inter after his €22.5 million move from Hertha Berlin.