The 23-year-old has been linked with a big-money move to the Gunners recently and, if rumours are to be believed, boss Arsene Wenger is close to getting this deal over the line.
The Telegraph state that both parties are close to agreeing to a £30 million compromise after Wenger wanted to wrap up the deal for £25 million, while the Bundesliga outfit were reluctant to do business for less than £35 million.
If true, Xhaka represents a significant coup for the North Londoners as they look to right the wrong of this season - and there are plenty.
Leicester City are worthy champions but so many Arsenal fans are furious over how their side's Premier League title bid fizzled out for a 12th successive year.
Still, getting their business done early is a positive sign - indeed the report is true - as Wenger has historically been accused of dithering in the transfer market.
Xhaka, who will challenge Francis Coquelin's position in defensive midfield, will be travelling to France this summer for Euro 2016 with Switzerland, meaning his value may increase if he impresses. Signing him before the tournament is the smart move by Wenger.
Switzerland boss Ottmar Hitzfeld once compared him to a young Bastian Schweinsteiger, and if those comparisons are in any way just then Wenger could have a serious talent on his hands if the deal goes through.