The Gunners have wrapped up a deal for the highly-rated midfield star boss Arsene Wenger believes can help turn the club into Premier League winners.
Wenger has been tracking the 23-year-old Monchengladbach captain for the past season and decided to make his move after earmarking a tough-tackling midfielder as one of his priorities.
Xhaka has signed a four-year deal and completed his medical before linking up with the Switzerland squad ahead of the European Championship.
He said: “I’m very proud to be joining Arsenal. I cannot wait to move to London, represent this special club and play in the Premier League.
“I will give everything to help Arsenal win trophies and make the fans happy.”
Xhaka already has 41 caps for Switzerland and has long been earmarked as a player who can play for Europe’s biggest clubs.
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He joined Borussia Monchengladbach in 2012 from hometown club FC Basel where he won two Swiss League titles and the Swiss Cup in a Double-winning season in 2011/12.
Wenger said: “Granit Xhaka is an exciting young player, already with good Champions League and Bundesliga experience.
“We have been watching him for a long time now and he is a player who will add quality to our squad.
“We wish Granit a good Euro 2016 with Switzerland and look forward to welcoming him to Arsenal ahead of next season.”
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