Ibrahimovic joined Paris St Germain last month in a deal that saw him leave AC Milan, and his new club face Barca in a friendly in the French capital on Saturday.
Xavi, a three-time UEFA Champions League winner, believes the signing of the Sweden international is a move that can propel PSG to European success in the future.
“PSG are a very good side, they have signed some top level players like Thiago Silva and Zlatan Ibrahimovic to add to the good players that were already there,” said the 32-year-old midfielder.
“They are another candidate for the Champions League. They have set themselves the objective of winning the Champions League in the short to medium term and they have the financial means.”
Xavi knows Ibrahimovic from the striker’s season with the Catalan club in 2009-10.
Although the 30-year-old target-man endured a difficult relationship with coach Pep Guardiola, he did find the net 21 times and Xavi has only positive words.
“He is a great signing,” said the Spaniard. “He performed fantastically for us and he is a top level player.
“He can bring a lot to them, and is the signing they needed to go on and win the French title.
“I don’t think he had a disappointing season (at Barcelona in 2009-10).
“We won La Liga and got to the semi-finals of the Champions League, he scored important goals and we had a good understanding with him on the pitch and in the dressing room.
“He only stayed one year but he didn’t leave behind a bad image.”