The Holland midfielder left RB Leipzig for Spurs in August, though also had an offer for Chelsea.
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His agent, Ali Barat, told RMC: "Tottenham and Chelsea are both fantastic clubs with solid projects, and there was great interest from both sides.
"However, Chelsea was always clear to us that there were certain limitations that made the talks difficult. When talks with Tottenham began, it became clear that this project would be a perfect fit for Xavi, and I think the conversation with coach Thomas Frank was key to Xavi's decision.
"With Xavi, it was crucial to clearly understand his priorities and ensure that the club he would be joining shared his long-term vision. Xavi has a very strong mentality and personality."