Xavi has ended speculation that he was set to return to Barcelona by signing a one-year contract extension with Al-Sadd.
It was reported that the ex-Barca captain was poised to replace the under-pressure Quique Setien at Camp Nou.
Xavi has made no secret of his desire to coach the Catalan giants, but the 40-year-old has agreed to remain in Qatar for at least another season.
The former Spain midfielder has won the Qatari Super Cup and Qatar Cup in his first season in charge of Al-Sadd and is hungry for more trophies.
He told the club's official website: "I am happy that the squad is complete today after the return of the remaining first-team players, in preparation for this upcoming period and the resumption of the league championship.
"I am happy to continue with Al-Sadd, and the team's goal will always be to compete for all titles."
Xavi's side are third in a Stars League that will resume later this month after being halted due to the coronavirus pandemic.
Al-Sadd trail leaders Al Duhail by 10 points with only five matches to play.
Barca legend Xavi recently stated that he will only return to the LaLiga champions when the time is right, having turned down the chance to replace former coach Ernesto Valverde in January.
"I'm a club man. I would like to return at the right moment to start a project from zero," he was quoted as saying by Sport.
"I've said it a lot of times, but I want to take footballing decisions at Barcelona.
"It's clear that after the [presidential] elections the stage would be set, of course. I'm not ruling anything out.
"They came for me in January, we were speaking. I told them the circumstances and timing weren't right."