Emery was left to choose between five players of Laurent Koscielny, Petr Cech, Aaron Ramsey, Mesut Ozil and Xhaka as to who will be the club’s skipper after replacing Arsene Wenger in 2018.
And with three of the above players departed the club, Ozil and Xhaka were left as the only candidates.
But after a secret pool conducted by the Spanish trainer on Friday, Emery has handed Xhaka the captaincy role for the Gunners permanently.
Xahka, 27, has captained the side in six of their eight games in all competitions this season.
Before the declaration of a new leader for Arsenal, young centre-back Rod Holding revealed the manager’s method of selecting his skipper.
"It was just write names down and then give them to the manager and he will go through them obviously with his input and we'll see what happens.
"I have no idea [when an announcement will be made], but there is a lot of leaders in that team who are helping each other out and pushing each other on.
"Now that we've got these five captains that the manager has brought in it's spreading the leadership group rather than having one person to dictate it.
"You're getting more input, it's generating a good environment."
Aside being named Xhaka as the new club captain, Unai Emery is still mulling over a vice-captain selection and reports are that strikers Alexandre Lacazette and Pierre-Emerick Aubameyang stand tall for the said role.
Coming from a 5-0 win over Nottingham Forest in the Carabao Cup, Arsenal will look to continue their winning momentum when they travel to the Old Trafford on Monday.