Barcelona coach Xavi Hernandez has agreed a one-year contract extension with the LaLiga champions, prolonging his stay until 2025, a source has confirmed to ESPN.

The new deal includes an option for an additional year, too.

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Xavi's current terms were due to expire next summer, but he has always insisted there would be "no problems" in reaching an agreement over new terms.

Negotiations accelerated after the transfer market closed earlier this month, with an official announcement possible as soon as this week, the source added.

Xavi, 43, replaced Ronald Koeman as Barça coach at the end of 2021 after starting his managerial career in Qatar with Al Sadd.

In his first campaign in charge, he took the club from ninth in the table to second, ensuring Champions League qualification.

Last season, he led the Blaugrana to their first LaLiga title since 2019, winning the league by 10 points.

There was also success in the Spanish Super Cup, with an impressive 3-1 win against Real Madrid in the final, but Barça came up short in the Champions League, the Europa League and the Copa del Rey.

During nearly two years in charge, Xavi has also overseen an overhaul of the squad, with veterans Sergio Busquets, Jordi Alba and Gerard Pique among those to depart since he took over.

Meanwhile, Ilkay Gündogan and Robert Lewandowski are among the experienced signings made by the club, with youngsters Ronaldo Araujo, Alejandro Balde, Pedri, Gavi and Lamine Yamal among those playing an increasingly significant role.

João Félix and João Cancelo are the two most recent additions to the squad. Their arrivals have prompted back-to-back 5-0 wins over Real Betis and Antwerp -- in the Champions League -- leading Xavi to say Barça are currently playing their best football since he took over.

Xavi previously spend 24 years at Barça as a player, including 17 in the first team. He made 767 appearances for the club, winning 25 trophies, including eight LaLiga titles and four Champions Leagues.