Chile international Sanchez is set to bring down the curtain on his Gunners career this week as he prepares to complete his proposed move to Manchester United.
And, despite abandoning the north London club for a Premier League rival, Xhaka believes Sanchez has left a lasting example of how the game of football should be played.
"To be honest, I don't know really what's true and what isn't," Xhaka told Sky Sports when asked about Sanchez's future.
"We're humans as well and we read things like you do. Alexis is an important player for us, he's got class which he shows every week, and I will be happy if he stays.
"If he stays or goes? I don't know what's going to happen. At training, he's always an example for many people because he always wants to win no matter what we are doing - a big game or a small game. I think that's something that characterises him."