Xhaka has signed for the Bayern-based club in a £21.5million move to after featuring in 200 matched for the Gunners in seven years.
Fielding questions from journalists after their 1-1 pre-season friendly draw with Nuremberg, Arteta revealed the motive responsible for Xhaka’s exit.
He replied: “There are three parts to this.
“He had a very clear desire that it was the right time and a big opportunity for him personally to move there.
“We had that conversation and in the end we all agreed that it was the right thing to move forward.”