Barcelona president Joan Laporta says coach Xavi is aware they cannot spend big to replace Sergi Busquets.
Xavi has announced he expects to buy a defensive midfielder to replace the former captain.
But Laporta told La Vanguardia: "He understands the club's situation. He would like to strengthen the midfield, but he knows that some options are unfeasible and we would be wrong.
"We would cut the progression of the juniors. We have Marc Casad, Pau Prim, Gerard Hernndez or Marc Bernal. First you have to look at home."
On Xavi's new contract, Laporta says "there will be no problem" , and added: "Sometimes it has given the feeling that praising Xavi was giving up everything that Pep (Guardiola) gave us, and it is not like that. Praising Xavi does not mean underestimating Pep's heritage."