Tito Vilanova's men take on the Ligue 1 runners-up in the French capital on Sunday, and the Spain international is eager to face Carlo Ancelotti's side, which boasts former Barcelona players Zlatan Ibrahimovic and Maxwell.
"This is a good test. PSG have spent a lot of money to attract high-level players like Zlatan [Ibrahimovic] and Thiago Silva. I think they will be a [tough] competitor in the Champions League," the 32-year-old was quoted as saying by L'Equipe.
"[Ibrahimovic], is a player of the highest order. When he played with us, his performance was fantastic. We won the league and played in the semi-finals of the Champions League. He scored important goals and we have good memories of him.
"I think PSG have placed great hopes on him. This is a player who can give them a lot and PSG have built an impressive team. In the short-to-medium term, yes, I think their goal is to win the Champions League, although it is difficult."
Xavi, who returned from an extended holiday to commence pre-season training on Monday, also spoke of how he was pleased with his own progress so far.
"I am happy with my early preparation, I played almost the entire Euro, except for extra-time (against Portugal in the semi-finals)," he said.
"I am available to the coach, and I feel good. I always want to win and be useful to the team.
"We know Tito Vilanova very well. He has hardly changed anything in training, the game system is the same and the players are too."
Kick-off at the Parc des Princes on Saturday is at 19:45 CET.
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