Speculation surrounding Xavi's future at Camp Nou has been rife following Luis Enrique's arrival, with Al Arabi coach Dan Petrescu announcing last week that the 34-year-old midfielder had agreed to join the Qatari outfit.
Manchester United and clubs from MLS have also been credited with an interest, and while the identity of his new club remains a mystery, Alves confirmed the Spain international has called time on his 16-year career at Barca.
"Yes, it's true, Xavi is leaving Barca," Alves told reporters after Brazil's recent 4-1 drubbing of Cameroon at the FIFA World Cup.
"It's a shame. I'm sorry for Barca and with him goes one of my footballing idols."
Xavi progressed through Barca's youth ranks and went on to win 22 trophies following his debut in the club's Super Cup final against Real Mallorca in 1998.
As for Alves, he appears to set to remain at the club, despite reports linking him with a move to Ligue 1 champions Paris Saint-Germain.
"I think I'm staying, nobody has told me anything to the contrary," he said.