Xavi has made it clear that Barcelona are facing a 'final' this Sunday, with the departing coach even describing the Clasico against Real Madrid as the most important of the season so far.

The coach, however, has been full of praise for their LaLiga rivals and reiterated on several occasions how Los Blancos are in fine form after knocking out Champions League holders Manchester City - the best team in the world according to the coach - on Wednesday.

On the other hand, he insisted the controversy generated from Ilkay Gundogan's statements following their Champions League exit is over and stressed the German did not intend to cause offence.

"It has been solved. I didn't see a problem, but by talking people understand each other and it has been solved," Xavi told reporters. "When there is no bad intention, there is no problem. Everything is settled."

Xavi compliments Real Madrid

The Barcelona coach admitted that his side had been licking their wounds after a painful exit from Europe, and warned Barcelona that Real Madrid will be on a high after overcoming Man City - making it clear in no uncertain terms that his team should expect a difficult match.

"I'm thinking about the positive scenario, about playing a great match and winning. I'm preparing the match to win," he added.

"For us it is the most important game of the season. We have to win to put pressure on the leader. If you win, you go to five [points behind] and it is the scenario we would like.

"We will find a strong Real Madrid and even more so after eliminating the best team in the world, [Manchester] City. The euphoria will be through the roof and the opposition will be very strong.

"Today we trained well, yesterday we had a Champions League hangover. The team has all the enthusiasm in the world to fight for this league."