Al-Sadd have confirmed that Xavi is set to return to Barcelona as the club's new head coach.
Earlier this week, the Qatari outfit said that the 41-year-old would not be allowed to leave his position as manager "at this sensitive time of the season".
However, Barcelona vice-president Rafa Yuste and director of football Mateu Alemany have been in Doha holding talks with Al-Sadd in the hope of coming to an agreement.
Xavi has now been granted permission to return to his former club as head coach, with the Catalan giants activating the release clause in the Spaniard's contract.
"Xavi informed us a few days ago of his desire to go to Barcelona at this particular time, because of the critical stage his hometown club is going through, and we understand this and decided not to stand in his way," Al-Sadd CEO Turki Al-Ali said in a statement.
"The Al-Sadd administration has agreed on Xavi's move to Barcelona after the payment of the release clause stipulated in the contract. We've agreed on cooperation with Barcelona in the future. Xavi is an important part of Al Sadd's history and we wish him success."
Sergi Barjuan, for the moment, remains in interim charge of Barcelona, who sacked Ronald Koeman as head coach last week following a disappointing start to the campaign.
Xavi's first match at the helm is likely to be the Catalan derby against Espanyol on November 20.
