The Uruguay international has been in impressive form for Barcelona this season, making 24 appearances in all competitions, contributing two goals in the process.
Araujo has entered the final 18 months of his contract at Camp Nou, though, and a number of clubs are believed to be keeping a close eye on the situation.
However, Xavi, who addressed the media ahead of Sunday's La Liga clash with Atletico Madrid, has said that signing Araujo to a new deal "is one of the priorities" for the club.
"Araujo's contract extension is one of the priorities. We definitely want to extend his contract as soon as possible. Araujo is giving us a lot and he is highly esteemed in the club and the dressing room," Xavi told reporters.