While it still needs official confirmation, the Bundesliga outfit are rumoured to have received a fee of close to €39 million for the services of the tenacious Swiss midfielder.
The 23-year-old's arrival appears imminent, after the top-flight English club announced the departures of Mikel Arteta, Mathieu Flamini and Tomas Rosicky this week.
Xhaka has made 36 appearances this campaign, with 28 of them coming in the Bundesliga, where he has netted three goals.
Arsene Wenger should have a midfield solution in the Swiss international, given that this season the Gunners have struggled due to the constant injury problems for Jack Wilshere and the fact that Santi Cazorla was also sidelined for four months.
After a few outgoing players were announced, Arsenal have made an important investment already, splashing the cash one of the Bundesliga's most promising talents.
