The summer signing is recalled to the starting lineup to face off against his brother Taulant Xhaka after Coquelin was ruled out for several weeks with a knee injury.
Manager Arsene Wenger makes just one other change from the side that claimed a memorable victory over Chelsea in the Premier League at the weekend, with David Ospina preferred to Petr Cech between the sticks.
Alexis Sanchez, who grabbed a late equaliser for the Gunners in their opening group game at Paris Saint-Germain a fortnight ago, continues to lead the line with support from Alex Iwobi, Mesut Ozil and Theo Walcott.
Wenger sticks with the back four that started against Chelsea and the Ligue 1 champions, with Nacho Monreal on the left, Hector Bellerin on the right and Shkodran Mustafi partnering Laurent Koscielny in the heart of the defence.
A notable inclusion on the bench is Gabriel Paulista, who has not featured so far this term after suffering a knee injury in pre-season, while Olivier Giroud misses the clash entirely following his last-gasp red card in the French capital last time out.
For the Swiss Super League champions, manager Urs Fischer makes four alterations to the side that claimed a 3-1 victory at St Gallen over the weekend to make it nine wins from nine league games this season.
All of the alterations come in the attack as Fischer opts for a 5-3-2 formation, with Xhaka dropping down into the backline.
Birkir Bjarnason and Luca Zuffi also come into the XI to join Alexander Fransson in the middle of the park, while Davide Calla, Matias Emilio Delgado, Mohamed Elyounoussi and Andraz Sporar are consigned to the bench.
Arsenal: Ospina; Monreal, Koscielny, Mustafi, Bellerin; Xhaka, Cazorla; Iwobi, Ozil, Walcott; Sanchez
Subs: Cech, Gibbs, Gabriel, Elneny, Reine-Adelaide, Oxlade-Chamberlain, Lucas Perez
Basel: Vaclik; Traore, Balanta, Xhaka, Suchy, Lang; Fransson, Zuffi, Bjarnason; Steffen, Doumbia
Subs: Calla, Delgado, Elyounoussi, Gaber, Hoegh, Sporar, Vailati
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