The 27-year-old, who enjoyed a return to form under Mikel Arteta at the Emirates, will wear the armband after Stephan Lichtsteiner's retirement from football.
"It's a real pleasure to meet again with the national team after a ten-month break," Xhaka said.
"As the new captain, I am extremely proud to be able to play for my country, and moreover to represent it in the captain's role. It's a dream come true.
"We are happy to be able to count on your support and we promise we will do everything to bring you joy in the upcoming campaign and also in the future."