Xhaka could depart after his agent claimed the midfielder has already agreed personal terms with Hertha Berlin and it is now just left for the two clubs to agree a fee.
Though Arteta recently spoke about how much he likes Xhaka.
On the midfielder, Arteta said: “As a player, when I was going from Arsenal to City to start coaching and we were looking in that position, he was one of the players on my list.
“This is how much I liked him. I was happy when Arsenal signed him because I thought he was going to be a terrific player.