The 24-year-old had been linked with Fulham and Crystal Palace after being left out of the Nerazzurri's pre-season tour of the United States.
However, the Italian international will by plying his trade at the Stadio Citta del Tricolore this season, with the deal including an option to make the move permanent in January.
"I want to have a great year," Schelotto told Sky Sport Italia. "Sassuolo behaved well with me and with Inter, so tomorrow I will have a medical.
"I want to play, that is what I want. Not being part of pre-season training with Inter was a tough moment for me.
"My agents and my family stayed close to me, but this is another step and nobody knows what football can hold. I am happy now."
Schelotto only joined Inter from Atalanta in January.