Verratti has steadily impressed since moving to the French capital in 2012, prompting rumours to circulate linking him with a move to Barcelona.
Speaking in an interview with Canal Football Club, 2010 World Cup winner Xavi described the Italy midfielder as "a player of an exceptional level".
"I love Verratti. I like his vision of the game. He never loses the ball," he said. "He would fit well in the Barca game. I'd like to see him at Barcelona."
Veteran Xavi, who left the treble-winning Catalans for Qatari side Al Sadd in the off-season, added that PSG are "a great team".
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"I enjoyed their match against Real Madrid," the Spain legend said of their 1-0 Champions League defeat to Rafael Benitez's side.
"Paris was much better even if they lost. I like PSG because this is a team that likes to dominate, with Verratti, [Thiago] Motta or Ibra [Zlatan Ibrahimovic].
"Lassana Diarra is a very physical player compared to Verratti but combines the two things, he puts a lot of pressure, plays forward and does not lose the ball," he added, referring to the former Arsenal and Chelsea midfielder who plays for PSG's Ligue 1 opponents Marseille.
"The best - Verratti or Diarra? For me the best is [former Barcelona team-mate Sergio] Busquets."
Xavi, who won 133 caps for Spain, added that he believes Barcelona's midfield of Busquets, Andres Iniesta and Ivan Rakitic is the best in Europe, although "PSG is very close".
He said: "With Verratti, [Blaize] Matuidi and Motta, they are very technical, physical, they do not lose the ball. They complement each other perfectly."