The Spaniard's current deal is due to expire in June 2014 but he will commit to the Primera Liga side for a further two years, the club have revealed on their official website.
The 32-year-old reached an agreement over an extension with Barca last month but will make the deal official on Monday.
Xavi is the third key player to extend his contract at Barca in recent weeks, with Carles Puyol penning a new deal earlier this week and Lionel Messi committing in late December.
However, goalkeeper Victor Valdes said this week that he will not be renewing his agreement with the club.
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