Jurrien Timber has arrived at Arsenal to finalise his move from Ajax.
The Dutch international defender will now undergo his medical before completing his switch to the Gunners.
Arsenal will pay Ajax €40 million (£34.2m) for the 22-year-old, with a further €5m (£4.2m) to be paid in add-ons.
Timber, who has spent the majority of his young career playing as a centre-back for Ajax and the Dutch national side, is being signed as a right-back.
He is expected to travel with his new team-mates to the club’s training camp in Germany next week.
“We are saying goodbye to a fantastic player and person loved by all of us,” Mikel Arteta said. “It has been an incredible journey together for him and he has given absolutely everything for this club.
“The influence Granit has had on his team mates on the pitch and colleagues at the club, will tell you just how popular he is.
“We cannot thank Granit enough for his service and contribution to this club over the years. We wish Granit and his family all the best in the next step of their lives.”
Xhaka made 297 appearances during his seven year stay at Arsenal, scoring 23 goals and providing 29 assists.