The 44-year-old had announced in January that he would step down at the end of the season, but was persuaded to stay by club president Joan Laporta.
However, comments by Xavi in a recent news conference appear to have angered the club’s board, who now feel the former Spain midfielder should depart.
Barcelona B team manager Rafael Marquez is favourite to take over as manager.
Before Thursday’s away win at Almeria, Xavi suggested it would be difficult to compete financially with rivals Real Madrid and other top teams in Europe.
“I think that Barca fans need to understand that the situation is really difficult, especially economically, to compete with Real Madrid in Spain and others in Europe,” he said., external
“We will adapt to this. It doesn’t mean that we don’t want to fight to compete and fight for trophies. It is the situation for Barcelona at this time. We need stability and time.”
Real have already secured the La Liga title this term, are in the final of the Champions League and will sign France striker Kylian Mbappe from Paris St-Germain in the summer.
Barcelona are 14 points behind Real Madrid in the league with two games remaining.
Xavi took charge in November 2021 after leaving Qatari club Al Sadd and guided Barca to the Spanish title in his first full season in charge in 2022-23.
The Spanish giants exited this season’s Champions League at the quarter-final stage following defeat by PSG.BBC.