Xavi Hernández said there is still work to be done to turn around the situation at Barcelona after agreeing a one-year contract extension with the LaLiga champions, prolonging his stay until 2025.
The new deal includes a performance-related clause to prolong the commitment until 2026.
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Sources told ESPN that Xavi insisted on only signing a short-term contract because he believes his long-term future at the club should be linked to his achievements in the job.
"We [Xavi and his coaching staff] came in at a difficult moment," the Barca boss said in a news conference on Friday before his new contract was later confirmed by the club.
"The club was in an adverse situation -- in a sporting, financial and psychological sense. Seeing where we are now, a lot of good work has been done, from the president, to the sporting directors through to all the staff.
"We are still turning the situation around. It's a process of development and construction, but we are doing a good job.
"This season is now about consolidating on the performances and results that won us two important trophies last season, LaLiga and the [Spanish] Super Cup."
Xavi, 43, replaced Ronald Koeman as Barca 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 in the process.
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 Barca came up short in the UEFA Champions League, the Europa League and the Copa del Rey.
"The Super Cup win in January was a point of inflexion," Xavi added. "It was when the players saw that we could compete after beating a great side in Real Madrid in the final by playing good football.
"That is when the players started believing and we, the staff, gained credibility. That was a key moment."
During nearly two years in charge, Xavi has also overseen an overhaul of the squad, with veterans Sergio Busquets, Jordi Alba and Gerard Piqué 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 Ronald Araújo, Alejandro Balde, Pedri, Gavi and Lamine Yamal playing an increasingly significant role.
João Félix and João Cancelo are the two most recent additions to the squad. Their arrivals prompted back-to-back 5-0 wins over Real Betis and Antwerp -- in the Champions League -- leading Xavi to say Barça are playing their best football since he took over.
The task now facing Xavi is to restore Barcelona's prestige on a European level following a run of disappointing results in the Champions League.
After being knocked out in the group stage in each of the last two seasons, Xavi has said the next step in his team's development is to compete in Europe again and reach the latter stages of the competition.
They opened this season's Champions League campaign with an imposing 5-0 win over Antwerp in a group which also includes FC Porto and Shakhtar Donetsk.
Xavi previously spent 24 years at Barca 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.
However, he is aware his spell as manager is unlikely to be as long.
"I think it would be complicated to stay in the job that long," he laughed when asked if he could see himself managing Barcelona for 15 years.
"The demands that exist here are huge. It is a constant rollercoaster of emotions. I hope to stay here for many years, but 15 years? That's a really difficult task!"