The Andalusians are set to face the Catalan giants on Sunday and although Xavi's teammate Lionel Messi grabs the headlines, the Chilean feels it is Xavi who could have a major say in how the weekend's encounter goes.
“Messi demonstrated in every game why he won the Ballon d'Or,” the 59-year-old told reporters.
“But I have always said that what makes Barcelona great is Xavi. He is what truly makes the difference.
“I know that Messi scores a great number of goals, but it is the Xavi philosophy that is so important.”
Pellegrini's side hosts the league leader, which is 21 points ahead of its opponent, while Malaga has conceded 15 goals in its last four meetings with the Blaugrana.
Despite this, Pellegrini still insists his side can get something from the game.
“In football the percentages don't matter,” he added. “Things change – every game is different. We have to go in and believe that we can win.
“It is our obligation to play a good game. We are two teams that treat the ball better than any other side.
“When we face a very good team, we have a lot of motivation, so I can see us doing well.”