The Catalan giants are understood to be considering possible replacements for incumbent boss Quique Setien after numerous problems on and off the pitch since he took over from Ernesto Valverde in January.
Barcelona sat top of La Liga at that time but surrendered their lead to miss out on the title to bitter rivals Real Madrid, while they also find themselves as underdogs heading into Friday's Champions League quarter-final against Bayern Munich.
Xavi has regularly been linked with the job since hanging up his boots and moving into coaching with Qatari side Al-Sadd, but he has now ruled himself out of the running for the foreseeable future due to "external noise around the club".
"There's a lot of external noise around the club, a lot of issues off the pitch and I don't think now is the right time," the former Spain international told Icon magazine.
"In January I told them it wasn't the right time and they haven't contacted me since.
"I'm delighted to continue to gain experience and challenge myself and of course it'll be a privilege for me to one day coach Barca."
Xavi is Barcelona's all-time leading appearance-maker with 767 across all competitions, helping the club to 25 trophies including eight La Liga titles and four Champions Leagues.