The Swiss international became the Gunners' third most expensive signing in their history following his £34million move from Borussia Monchengladbach in the summer, but he has failed to hold down a regular place.
The 24-year-old has started just three Premier League matches since August and Wenger says the midfielder has struggled to find his feet in England, although he remains confident he will become a long-term success at the Emirates Stadium.
"He needs to adapt, then we need to find the balance," Wenger said. "We have the positional play, he plays in a deeper lying midfield position, he passes through the lines.
"He needs to adapt to the way we play and the tactical pace of the English game. I am confident he will do very well."
Xhaka has come on as a late substitute in the last two matches but will be hoping to force his way back into the starting line-up for Sunday's home clash with Bournemouth.