The Swiss international has made no secret of his desire to play in the Premier League, repeating several times over the past few months that he sees a move to England as his dream.
Bild say, according to their own information, that Arsene Wenger recently had a meeting with Xhaka's father Ragip, agent Andy Gross, and another man said to be working on behalf of the English club.
The newspaper go on to say that Arsenal have €50m ready to sign the player.
Bild break that down into: €43m transfer fee, €5m signing on fee for Xhaka himself, and a further €2.3m payable to the midfielder's agent.
A wage of €8m is also claimed by Bild.
It just sounds so un-Arsenal.
In January, Xhaka gave a long interview to Tor Fabrik in Germany and an Arsenal move was suggested to him, after he'd once again gone over his England dreams.
Tor Fabrik asked Xhaka about his shirt number 34 and what it means to him, the player explained: "That was my first professional number at Basel. It's even tattooed on my back. I would also like to wear it in the future."
Then this happened:
TF: What if tomorrow Arsene Wenger calls and wants to take you, but the number is already taken?
Granit Xhaka: It was also like that at Gladbach, with Amin Younes. And at Arsenal Coquelin has it.
TF: You've already called?
Granit Xhaka: Yes, I've spoken with him, he would like to take another number (laughs).
One note of caution would that the same article says Borussia Dortmund are interested in Michy Batshuayi, and the Marseille forward would cost €15m... which he almost certainly would not.