Xavi tells Barcelona will sell Dembele this month if he fails to sign a new contract.
The 24-year old French international has entered the final six months of his Barcelona contract and there has been constant negotiations over a contract renewal in the past few months.
He joined the Catalan giants back in 2017 from Borussia Dortmund for a £110million fee which turned out to be a disaster signing for Barca.
There has been constant discussion between the club and player’s camps to make a decision on the winger’s future.
“Either he renews or we’ll find him a way out,” Xavi told reporters on Wednesday. “In the end, the club has decided that if he does not renew, a solution must be found.
“We have to do what is best for the club. We are in a situation where we have to stop in our tracks, [director of football] Mateu Alemany has been talking with him and his representatives for five months.”
He added: “[Dembele] tells me he wants to continue – that’s a question for him. I couldn’t have been more clear. It has not disappointed me. It is a very difficult case.”