Lionel Messi became a free agent on Thursday, but Xavi believes it is a matter of time before the captain and record goalscorer re-commits to Barcelona.
While away with Argentina at the Copa America, Messi has been focusing on that tournament, and as July arrived there was no word of a new contract at Camp Nou.
That meant his previous deal expired, making Messi potentially available to suitors that may wish to sign him.
Interest from Manchester City and Paris Saint-Germain has appeared to go quiet amid an assumption that Messi will stay with Barcelona.
Former team-mate Xavi feels Messi is moving closer to signing again with the Catalans and would put money on the 34-year-old doing so, even if small doubts linger.
"These are market circumstances, we have to wait," Xavi said. "I imagine he is talking to the club and the president.
"I wish Leo the best, as a friend of his and as a cule [a Barcelona fan], I wish him to continue at Barca. Hopefully, it can be announced as soon as possible."
Speaking to Mundo Deportivo, Xavi, who is coach of Al Sadd, added: "If I had to bet, I would say that he will continue at the club, although many things have been said in football, but I would say that he will continue.
"Leo needs Barca and Barca need Leo. He is happy in Barcelona; he has spent his life there. I would bet on him renewing."
Messi was again hugely influential for the LaLiga giants last season, finishing as the league's top scorer and managing 38 goals and 12 assists across all competitions.
He created 117 chances for others and netted a goal every 110.32 minutes, when taking all competitions into account.
Jordi Alba was next on the list of the most chances created, teeing up 85 goalscoring opportunities, while of players with more than five goals, Antoine Griezmann had the next-best minutes-per-goal ratio, with one every 195.2 minutes.
In terms of the most games played, top-flight rookie Pedri finished top of the pile with 52 games, and he has since gone on to play for Spain at Euro 2020.
Pedri will then go on to the Olympic Games and will have had barely any break by the time LaLiga gets under way in 2021-22.
Barcelona are reportedly unhappy at the demands placed on the shoulders of the 18-year-old midfielder, but Xavi thinks such experiences are priceless.
He said: "If I were Pedri, I would go to the Games. I had the opportunity at the time, and they are opportunities that do not return.
"He is 18 years old and footballers want to play. It's a unique opportunity to go to the Games. If you ask Pedri, he will tell you that he is excited."
