Jose Mourinho made it clear early in the summer that he wanted Xhaka at the Stadio Olimpico next season and the Serie A giants have been pushing to land him.
But they failed with a loan plus option to buy bid earlier in the window and have been working on tabling a new offer.
However, their pursuit has gone south and Arsenal are now prepared to offer the Swiss midfielder a new contract in their attempt to keep him at the Emirates.
Roma remain interested and, according to Italian daily Corriere dello Sport, the Serie A giants are prepared to wait a bit more to sign Xhaka.
It has been claimed that Roma have set a deadline in the middle of August for completing a deal to sign the Swiss midfielder.
But after the internal deadline, Roma will look at other targets as Mourinho still wants to bring in a midfielder.
Xhaka has agreed on terms on a contract and is open to a move to Roma as he wants to work under Mourinho.
But for the moment the negotiations remain in limbo as Roma consider the options on their table.
