He replaces Portuguese coach Jesualdo Ferreira, who left Al Sadd after leading them to a 14th league title.
Coming through Barcelona's academy in 1998, Xavi soon became the heartbeat of the team's midfield, winning eight La Liga titles and four Champions League crowns before joining Al Sadd.
Al Sadd confirmed Xavi will take charge of the pre-season training camp in Girona from July 14-29.
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(Reporting by Hardik Vyas in Bengaluru and Osama Khairy; Editing by David Goodman)
