It had been claimed that the midfielder wanted to quit the Gunners in order to play Champions League football.
A statement purported to originate from Xhaka’s cousin claimed that a £49m move to Inter was being lined up.
But it was proven to be a false rumour which gathered traction despite being started by a Twitter troll.
The 26-year-old has been representing Switzerland in UEFA’s Nation’s League in losing efforts against England and Portugal last week.
Ahead of his summer holidays, Xhaka was asked what the future holds for him next season.
When speculation regarding an Emirates move was put to him, the former Basel star shut the talk down while referring to his contract.
“Not that I know,” Xhaka told Blick when asked if Arsenal were planning to sell him.
“I have another four years contract, I only signed last year.
“I’m happy there, my family too. That’s the most important.”
Xhaka’s response to the exit speculation comes as:
With Laurent Koscielny potentially moving on this summer, the Gunners could be looking to install a new captain.
Xhaka seems set on putting himself forward for the role, judging by his response to the follow up question.
He was asked whether being handed the armband would be fantastic, and replied: “It would certainly be the dot on the i.”
Since his £30m arrival from Borussia Mönchengladbach three years ago, Xhaka has made 134 Arsenal appearances.
He brought about doubt over his Arsenal future in an interview in March when he opened the door to a summer exit.
“I’m very ambitious,” Xhaka said. “I want to take the next step, Arsenal does not have to be the last stop.”