Xavi became presented in front of just about 10,000 fans at Camp Nou earlier than signing his agreement at the pitch, alongside his own family and Barca president Joan Laporta.
The forty one-year-old, who has again to the club where he gained eight La Liga titles and four Champions Leagues as a player, walked out to chants of "Xavi, Xavi" from his adoring supporters.
Laporta said: "Today might be an ancient day for Barca."
Despite membership debts of greater than one thousand million euros ($1.16billion), Xavi is tasked with returning Barcelona to Europe's elite and recovering a style of play maximum associated with Johan Cruyff and Pep Guardiola.
But in a press conference after the presentation ceremony, Xavi's major theme become much less approximately style and extra about substance, the Spaniard emphasising the first priority is to repair order.
"In the first moment it's vital we put policies within the crew, that's the first point," said Xavi.
"Then we speak about values appreciate, mindset, attempt - if we do not have these values, we do not have a team.
"And then we are able to observe fashions of play, how we shield and assault, however the guidelines come first."
Barcelona are ninth in La Liga and not likely with a purpose to make large signings any time soon.
"I recognise that it's far a tough time, both economically and on the pitch," stated Xavi.
