The Gunners have been in talks with the Switzerland international but Borussia Monchengladbach are stalling on the deal until they find a replacement
Arsenal are expected to complete the signing of Granit Xhaka before Euro 2016 after the player agreed personal terms with the club, Goal understands.
Xhaka has been courted by Arsene Wenger’s side for several months and while Manchester City are the most recent side to show interest in the Swiss midfielder, the player is said to favour a move to Emirates Stadium instead of Pep Guardiola’s financial heavyweights.
23-year-old Xhaka wants any deal to be completed before this summer’s tournament in France and chief transfer negotiator Dick Law has already drawn up an impressive financial package for the Borussia Monchengladbach star, which he is likely to accept.
But Gladbach are stalling on finalising a deal until they sign a replacement for their star midfielder and have set a minimum transfer fee of €43M, which Arsenal have mulled over for the past few weeks.
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With Xhaka set to be the first arrival at Emirates Stadium this summer, talks between the Gunners and Bolton continue over the signing of defender Rob Holding. A bid of £750,000 has been rejected but the player could push for a move if a follow-up offer is rebuffed.
Wenger confirmed after Sunday’s win over Aston Villa that he anticipates Olivier Giroud starting next season as his primary striker, although his priority in the transfer window will be to bolster his front line, with Juventus forward Alvaro Morata heavily linked.
Meanwhile, City’s new boss Guardiola has identified Jack Wilshere as one of his main targets this summer but Arsenal will shortly put a new deal on the table which the player is expected to sign after Euro 2016.