Xhaka was again sent off in Arsenal’s 0-0 draw against Liverpool at Anfield on Thursday night in the first leg of their EFL Cup semi-final.
The Swiss midfielder was sent off for a bad tackle in the 24th minute and the Gunners had to dig in to escape Merseyside with a draw and keep their hopes of reaching the final alive.
Keown stressed that the midfielder has been regularly putting his team in uncomfortable positions by getting sent off but has continued to remain a favourite of Arteta.
He insisted that it is clear that the Arsenal manager loves him and rates him highly but the former Gunner does not believe he is the kind of quality the club need if they are to move forward.
The former defender said on talkSPORT: “If I were one of the players I wouldn’t be able to look at him last night after that game because of what he put his colleagues through.
“It’s happening again and again. It was embarrassing when it happened at the Etihad, they were so bad but he played a major part in that.
“The manager clearly wants him as he put him straight back in the team, he was suspended earlier in the season, he came back. He got injured and he went straight back in.
“That was not happening for Tierney and other players whom you would consider number one.
“He has got a manager who loves him but I feel if Arsenal are going to be successful going forward, then Xhaka is not of the quality going forward.
“But they do need him at the moment and what he has to do is clean up his act.
“He is costing Arsenal at the moment.”
Xhaka will not be available in Arsenal’s big north London derby against Tottenham on Sunday.