Jose Mourinho is desperate to sign the Switzerland international, who is equally keen on moving to the Italian capital.
However, according to La Stampa, the two clubs are far off from agreeing a fee.
The Gunners want at least £17m for Xhaka, who has two years remaining on his contract.
Xhaka has reportedly agreed personal terms with the the Giallorossi, but the move could be off as Mourinho wants to bolster his midfield before the season commences.
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