Xhaka has been linked with a move to AS Roma, with Jose Mourinho keen to add the Switzerland captain to his midfield options in the Italian capital.
Xhaka made a goalscoring return to the Arsenal midfield on Sunday as the Gunners lost 2-1 to European champions Chelsea in a pre-season friendly.
The former Basel midfielder’s current contract expires in the summer of 2023 and Arteta has underlined his intentions of keeping hold of him.
“Granit [Xhaka] is going to stay with us. He is a key member of our squad,” Arteta confirmed after Sunday’s game.
Xhaka’s importance to Arsenal could have even been made more significant after fellow midfielder Thomas Partey suffered an ankle injury against the Blues just before halftime.
“At the moment, it’s not looking good because he was in pain and he could not continue,” Arteta said of the former Atletico Madrid star.
Xhaka joined Arsenal from Borussia Monchengladbach in the summer of 2016 and has won two FA Cups in his time at the club.
He made 45 appearances across all competitions for Arsenal last season and scored one goal.