Xhaka was stripped of the captaincy earlier this after clashing with fans during the draw with Crystal Palace.
Arteta is fully aware of the Swiss' actions towards Arsenal fans against Palace.
And seeing as this was the reason why he was stripped of the captaincy in the first place it is difficult to see him being handed it back in the same season.
But football.london reports that him not having the armband won't mean he can't be an authoritative figure for the side, especially as he remains popular among his teammates.
Xhaka's job at the base of the midfield has been crucial to the way the Gunners attack at times and he looks more confident playing under the new boss.
Pierre-Emerick Aubameyang has since been named captain but a new one may be needed if he leaves the club.