Chelsea and Arsenal battling to sign Borussia Monchengladbach midfielder Granit Xhaka

Chelsea and Arsenal are set for a transfer battle in signing Borussia Monchengladbach midfielder Granit Xhaka in January. His contract with the Foals runs down until 2019 and has been attracting interest from top clubs in England.

According to German publication Bild, the Swiss international has a release clause of €40m (£30.5m, $43.5m) in his contract. The two Premier League giants are hoping to secure the services of the talented midfielder in the ongoing transfer window.

The report also suggests the player's asking price will go down to €30m, which would be €10m less than what Borussia Monchengladbach would get if they sanction the midfielder's sale this month. Even their league rivals Bayern Munich are in the race to sign him.

Xhaka has featured in 15 league games for his side this term and has scored three goals in the process. His style of play has seen him compared with Manchester United star Bastian Schweinsteiger and he is dubbed to be the "next Schweinsteiger", reports the Express.

The 23 year old joined Monchengladbach from FC Basel in 2012. He has already expressed his desire to leave the Bundesliga outfit and join a "top-top-top-club" in the future.

"Gladbach is a top club. But if I would go someday to become a top-top-top-club, I want to play there," the midfielder told Bild.

Monchengladbach's director of sport Max Eberl claims his side will allow Xhaka leave Stadion im Borussia-Park this window if they receive the right price for the player's signature.

"It depends a bit on our own sporting success, it depends on Granit's own performances and of course it depends on the figures," Eberl told WDR 2 radio, as quoted by the Daily Mail.

"If they reach a certain dimension, then you could get dizzy. There are always situations in which every club would have to make considerations. It is all in our own hands. As things stand, we are happy to have him with us and hopefully he will stay with us for a long time."