Arsenal move a step closer to signing the £33m-rated Swiss star.
Xhaka, 23, has emerged as one of Europe's hottest properties this season and was previously linked with Manchester City, whom he said it would be hard to turn down (ESPN).
The report goes on to claim that manager Arsene Wenger has already met with his father and thrashed out negotiations for Xhaka, who has 39 Switzerland caps.
The North Londoners have struggled this season since Santi Cazorla injured himself back in November, and the arrival of Xhaka would certainly keep the likes of Aaron Ramsey and Mohamed Elneny on their toes.
Xhaka is contracted to the Bundesliga club until 2019, which explains why he would be quite expensive, and it remains to be seen if Wenger would pay that money for an unproven talent.
He has only paid over the reported £33 million figure on two occasions, for Mesut Ozil and Alexis Sanchez respectively.