Sources told CCS last month that Arsenal were confident of signing Xhaka, 23, and Gladbach sporting director Max Eberl confirmed this week that they have received an offer for the player, although he neglected to name the bidding club.
Xhaka himself also declined to confirm whether Arsenal were the club in question but said he could imagine joining the Premier League side.
However, an agreement appears to be some way off, with Bild reporting on Thursday that Arsenal have offered only €25 million (£19.1m) for the Switzerland international and that Gladbach are seeking €40m (£30.7m).
Eberl told Bild: "There is an offer, but it does not mean that we will allow Granit a transfer for that price. We really don't need to discuss the fee proposed in the offer."
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