The Gunners have reportedly had the midfielder scouted on numerous occasions this season.
The Gunners are reportedly looking to add to their squad in the January transfer window, with their injury-hit squad demonstrating that they may be short on numbers.
Arsene Wenger is naturally keen to avoid a lack of options negatively impacting on their potential title challenge, with the north London outfit currently sitting joint-top of the Premier League table alongside Manchester City.
And it seems they are looking at the Bundesliga for potential recruits to bolster their squad, having been linked with several players in the division of late.
The latest is Granit Xhaka, according to TuttoMercatoWeb, with it believed that the Gunners have sent scouts to watch the Borussia Monchengladbach star on numerous occasions this season.
A move would make sense, with Arsenal requiring cover for defensive midfielder Francis Coquelin, should he get injured.
Currently Mathieu Flamini and Mikel Arteta fill that role in the side, but neither look capable of adequately replacing the Frenchman if called upon.
Xhaka, then, could be an ideal replacement, and at 23-years-old fits the bill of an ideal Wenger signing that can be developed in the future.