The Reds were thought to be interested in signing the Swiss midfielder, with reports suggesting that Jurgen Klopp was ready to lodge a club record bid to secure his signature during the January transfer window.
According to reports from Sport 1 howver, the 23-year-old Basel-born midfielder will join the Gunners in the summer.
At first glance this is need signing by Arsenal as they have a surplus of midfielders on their books. But with both Flamini and Arteta are out of contract in the summer and Jack Wilshere’s ongoing injury problems, Arsenal are in need of able-bodied reinforcements in midfield.
Xhaka is a terrific player and could become a complete midfielder, should he fulfill his potential. Being a left-footer he is a contrast to Arsenal’s other midfield players. Cazorla, Ramsey, Coquelin, Elneny et al are all right footed, so Xhaka can bring a nice balance and variety to the midfield.
The best part of his game is he can do everything – a jack of all trade type. He is a good tackler, an effective ball winner, makes darting runs into the box, has wonderful technical skills, has an eye for long passes and he is a considerable threat at set-pieces too.
Another highlighting feature of his game is his distribution from the base of the midfield. He is a reliable passer who can operate both as an advanced player and a defensive midfielder. At the start of his career, he used to play as no 10 but quickly turned into a player capable of dictating the tempo from deeper positions.
Xhaka would be a terrific signing for the Gunners. His price tag is slightly on the higher side but it seems Wenger is prepared to do another big money transfer deal for the Swiss midfielder.