Ousmane Dembele will stay until the end of the season.
The Frenchman has been ignoring contract renewals from Barcelona in the past few months.
He could end up leaving Camp Nou for free when he’s out of contract in the summer.
Dembele was allowed to sign a pre-agreement with an interested party in January but the winger refused to make any agreements.
Barcelona wanted to get some fee for his services but the 24-year old winger decided to not leave Camp Nou in the January window.
Club president Joan Laporta has let Xavi decide whether the former Borussia Dortmund winger will play a role for the Catalan giants in the remainder of the season.
Xavi said in his latest press conference: “The circumstances have meant we have not found a solution.
“Now he is part of the club, of the squad and he has a contract.
“We have met with all parties and we have decided that he is a part.
“He can help and has been a great professional. It’s a decision of the club.
“We will use him when I think it is convenient. He is one of the team.”