Xhaka's £130,000-a-week salary is now out of Newcastle's reach, but the club are claimed to be prepared to stretch themselves.
But now it seems that Xhaka isn't the only midfielder from the Gunners who the Rossoneri are interested in.
As reported by TMW, the Uruguay global is dissatisfied at the moment and will speak with Emery next week.
Xhaka has expert with the initially employees contemplating that, however has been stripped of the captaincy by Emery, with the Spaniard not involving him in any of the just a few matches because the exercise with Crystal Palace.More news: A Millennial Politician Dropped an "OK, Boomer" on Her Heckling Colleague
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'I want to say to them, they must have patience and in some circumstances they did not help us but we are trying to achieve the best emotional balance with the players.
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'"He was the top scorer past year in the league and I know he needs time to take that responsibility 100% but we will support him". He's not here today but also I think we need to take time with him, first to protect him and also to be calm and training with us every day.
He said: 'The first captain is Aubameyang because he is experienced and he has the respect of the dressing room.
Fifth-placed Arsenal are six points behind Leicester and Emery has been under pressure to deliver after winning two of their last nine league games but he said he had not been in discussions with the board regarding his future. "One is to play better with the ball, play with more confidence with our style, and take more responsibility on the pitch".