Locatelli burst on to the scene as a teenager with a wondergoal in a 1-0 Serie A defeat of Juventus in October 2016.
But the 20-year-old started only five league games in the 2017-18 season and has been allowed to leave by coach Gennaro Gattuso.
Sassuolo are reported to have paid €2million to loan Locatelli, while the permanent deal to be completed next year is said to be worth €12m.
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