The midfielder’s future at Arsenal has been under the scanner all summer due to serious interest shown by Roma.
Jose Mourinho wants Xhaka at the Stadio Olimpico next season and the Serie A giants have been pushing to land the Swiss international this summer.
The 28-year-old has also agreed on personal terms with Roma and is keen on the move but for the moment the Giallorossi are yet to table a bid that would convince Arsenal to sell him.
And it has been claimed the Gunners are preparing to offer a new deal to the midfielder in order to end rumours over his future at the Emirates.
Arsenal have been open to letting him go but Roma are yet to come close to matching their €20m asking price for the player.
The north London club have also come to the conclusion that finding a replacement for Xhaka within their budget will be tough.
Given what he offers on and off the pitch, Arsenal are prepared to retain him and offer Xhaka a new deal this summer.
He returned to pre-season training last week and has looked focused ahead of the new season despite the interest from Roma.
It remains to be seen whether the Serie A giants manage to put in an acceptable offer in the coming weeks for Xhaka.