Switzerland captain Stephan Lichtsteiner, who became Xhaka's club teammate when he joined Arsenal from Juventus last week, also said he hopes to help the midfielder take another step in his development.
"I've known Granit now for more than six or seven years, so he's just an fantastic player", Lichtsteiner told Arsenal Player.
Switzerland worldwide Xhaka appeared in every 2017-18 Premier League game for the "Gunners" and has been rewarded with a new deal.
Switzerland worldwide Xhaka signed joined the Gunners for £35 million in the summer of 2016 from Bundesliga side Borussia Mönchengladbach, and was a favourite of former boss Arsene Wenger, playing 37 out of 38 games in the Premier League last season.
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The deal is described as long-term, but Arsenal have not confirmed the exact length.
Arsenal's new head coach Unai Emery, who has replaced Arsene Wenger at the club, is looking forward to working with the 25-year-old midfielder. The Swiss open their campaign against five-times champions Brazil on Sunday. "He's an important member of the squad and is still young so will be able to develop even more", Emery told the club website.
Confirmation of a move for centre-back Sokratis Papastathopoulos from Borussia Dortmund is expected at the start of July, while Bayer Leverkusen goalkeeper Bernd Leno is another reported target as Arsenal plot their way back into the Premier League's top four.