The Spanish giants face a first-leg match against Gordon Strachan's side at Parkhead next Wednesday, before the return match takes place at the Nou Camp on March 4.
Confident Xavi has set his sights on Barcelona being crowned champions of Europe, which would compensate if they are pipped to the Primera Liga title by current leaders Real Madrid.
The playmaker insists the Nou Camp giants are determined to go all the way to the May 21 final in Moscow.
"We know that it is difficult for us in the league. There is a big gap of eight points, but we will not throw in the towel," Xavi told Barca TV.
"As for the Champions League and the Copa del Rey, we expect to reach the finals."
Xavi also warned that 17-year-old Bojan Krkic, who is likely be involved against Celtic, should not be labelled a world-beater yet.
The young forward has featured in five of Barca's six Champions League games so far, and will be seeking his first goal in the competition next week against the Hoops.
But Xavi stressed: "Everyone has said that he can make history. We should be very careful and remember that he is still young.
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