Borussia Monchengladbach midfielder Denis Zakaria is a target for Arsenal.
The Swiss has been in superb form for the German club who currently occupy top spot in the Bundesliga.
They are fighting off interest from several of European football's big-hitters for the 22-year-old.
Xhaka is set to leave the Gunners in January after a public falling-out with the club which has seen him stripped of the captaincy.
Any deal would depend on Arsenal having first refusal on Zakaria next summer if Monchengladbach decide to cash in.