The Gunners boss sparked a sceptical response when it was announced that the players would vote for the new captain, with Xhaka - a popular character in the dressing room - coming out on top.
But now, after the Swiss international's questionable response to boos from supporters against Crystal Palace, Emery is going to let the players have the final say once again.
As revealed by the Daily Mail, the opinion of the Arsenal squad will have a huge bearing on the decision regarding Xhaka after Sunday's fiasco at the Emirates.
Emery is fearful of a backlash from the squad due to Xhaka's popularity, but it is said he will remove the armband from him if the player himself opts to abandon the responsibility.
- Arsenal players confused by Pepe starting over Ozil
- Arsenal fans allegedly threw coins at Xhaka's car
- Ranking Arsenal's 11 Premier League captains
The position of club captain is not viewed with the same importance elsewhere in Europe as it is in England.
Staff at Arsenal therefore feel that Emery has undermined the role and there is a reluctance to strip Xhaka of the armband as it may demean the position even further.
Emery admitted in his post-match interview that Xhaka was 'wrong' to respond to criticism from the fans in the manner that he did and it seems he needs to take control of the situation.
Arsenal fans are questioning whether the former Paris Saint-Germain and Sevilla boss has the strength of decision-making to lead the team out of their current crisis.
If he can't make the big decisions on the squad himself - which he is paid by the club to do - perhaps the Gunners hierarchy need to look elsewhere.
The aptly named 'XhakaGate' is set to be a defining moment in Emery's reign and if he gets it wrong, it could be curtains for him at the Emirates.News Now - Sport News