The 32-year-old had been heavily linked with a move back to the Premier League, with The Athletic reporting that Xhaka had told Bayer Leverkusen he wants the move.
Xhaka’s agent Jose Noguerra Rodriguez confirmed to German media on Tuesday that there was an agreement between Sunderland and the midfielder.
New manager Ten Hag insists the Switzerland international still has an important role at the club and is reluctant to see another star leave this summer.
“His agent can say whatever he wants, but this club has already let three important players (Florian Wirtz, Jeremie Frimpong and Jonathan Tah) go, and we won’t let any more go.
“Granit is a leader, he still has three years left on his contract here.” The ex-Man United boss told reporters during Leverkusen’s pre-season tour of Brazil, per BILD.