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Arsenal have reached an agreement to sign Granit Xhaka on a long-term contract for an undisclosed fee.
The 23-year-old midfielder captained Borussia Monchengladbach to fourth place in the Bundesliga last season and has also won 41 caps for Switzerland.
Previously he played for Basel, winning two Swiss League titles and the Swiss Cup.
"Granit Xhaka is an exciting young player, already with good Champions League and Bundesliga experience," manager Arsene Wenger commented.
"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.”
Writing on Instagram, Xhaka said: Now it's official,"From next season on I will play for @Arsenal. I want to thank everyone at @borussia.
"Together we brought the club back to where it belongs, to the Champions League. I will always look back with pleasure to that time. But from now on I'm totally focused on playing at one of the biggest clubs in the world.
"It's a big honour for me to wear the Arsenal jersey, as well as it has been an honour to play for Gladbach in the last four years. I hope we see each other again in the Champions League!"