Xavi was due to leave Barcelona at the end of the season, but he reversed his resignation decision last month.
But on Friday morning, Bara announced that the 44-year-old is leaving.
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"FC Barcelona club president Joan Laporta has informed Xavi Hernndez that he will not continue as coach in the 2024-25 season," Barcelona announced.
"FC Barcelona would like to thank Xavi for his work as a coach and also for his incredible career as a player and team captain, and wish him all the luck in the world for the future."
Former Germany coach Hansi Flick is expected to be Xavi's successor.