Sanchez has been in sublime form this campaign, scoring 16 goals in 27 appearances in all competitions, but was recently criticised for failing to keep his emotion in check after the 3-3 draw with Bournemouth and following his substitution against Swansea City.
However, Xhaka is adamant the former Barcelona man's attitude should serve as an example to others.
"I think Alexis can be a good role model, because he always pushes himself to his limits, no matter if it is in training or in a match," Xhaka told the official Arsenal website.
"He can be a good role model for the young players."
Sanchez's good form has helped keep Arsenal's Premier League title chances alive, with Xhaka highlighting the forthcoming games against Burnley, Watford and Chelsea as being potentially season-defining.
"I think the next three games could tell a lot about what sort of direction we will go in this season," Xhaka added.
"We noticed already in the first game that it was really tough at their place [Burnley]. We needed a late goal to win. They play direct, they are compact defensively as well and that makes it difficult. But we are playing at home and we need the three points.
"Against these sort of teams, it is very important to score as early as possible and as many times as possible. That puts them under pressure, it makes them come out a bit more as well. We want to start positively, we want to force mistakes and if we do that, I am sure we can win this game."