Xavi has long been unhappy with his diminishing role in the Barcelona first team
The newly-formed American side, who have already acquired David Villa and Frank Lampard, have been eyeing Xavi for some time.
And according to Spanish radio station Cadena SER, the midfielder's father Joaquin and agent Ivan Corretja have met with New York representatives.
They claim that a meeting was held in a Spanish restaurant to finalise terms and conclude the 35-year-old's switch to the MLS.
And it's believed that once the deal is completed, the midfielder will see out the 2014/15 season at Barca and then link up with Villa and Lampard in 2016.
Xavi's future has been in doubt for some time at Barcelona, and Manchester United and Chelsea were put on red alert last October when he expressed frustration at being left on the sidelines.
He told reporters at the time that he was 'not comfortable' being in reserve at Barcelona and called the situation 'tragic'.
He said: "I want to play more and change the situation, although the team comes first and it is the coach who decides.
"I just have to take advantage of the minute given to me. It's a tragic situation but I want to reverse it and feel more useful.
Xavi has made more appearances than any other player in history for the Catalan side in a career that spans nearly three decades.
He started off in Barcelona's youth ranks in 1991, and has since made 492 senior league appearances for the club, scoring 57 goals.
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