"Thiago has renewed and that's great news," he said.
"He is a fantastic player with a lot of talent - the competitiveness of the group is great."
Xavi began last season with a niggling injury, but says he is feeling good ahead of the next campaign.
"I feel good physically, I'm very motivated and content," he said. "Last year I suffered some tendonitis in the Achilles tendon but I'm over that.
"I'll try to start off as best I can and at the highest level."