The former Barça midfielder, who took over as coach in 2021, led the club to their first La Liga title since 2019 and the Spanish Super Cup last season.
"We arrived at a difficult time, in unfavourable circumstances," Xavi told a press conference ahead of Saturday's game against Celta Vigo.
"Last year we won two important titles. We're in a process of transition."
Xavi said Barça had just played "their two best matches" since he took over, with 5-0 wins over both Real Betis in La Liga and Royal Antwerp in the Champions League group stage.
Xavi took over from Ronald Koeman, two years after his retirement as a player, on a contract until June 2024, winning 60 of the 96 matches he managed in all competitions.
Barcelona are currently second in La Liga, two points behind Real Madrid.
