Xavi will remain as coach of Barcelona, the Spanish giants said, despite the announcement in January that he planned to quit at the end of the season due to the "cruel and unpleasant" nature of the job.
Spanish media reported that the 44-year-old, who had signed a contract extension until 2025, changed his mind about quitting after a day of meetings with club president Joan Laporta and sporting director Deco.
His decision comes just a week after Barcelona were knocked out of the Champions League in the quarter-finals by Paris Saint-Germain.
Xavi said he felt "liberated" when he made his decision to stand down.
He had repeatedly said the job was his "dream" but admitted the pressure of the role eventually proved too much.
This season, Barcelona were thrashed 4-1 by Real Madrid in the Spanish Super Cup and dumped out of the King's Cup by Athletic Bilbao.
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