The Brazil international's future had been one of the main talking points throughout the transfer window, with Paris Saint-Germain and Liverpool among those rumoured to be among his suitors.
He opted to remain at Camp Nou for the 2014-15 campaign and fight for his position under new head coach Luis Enrique.
However, Andoni Zubizarreta has now confirmed that the 31-year-old will end his lengthy association at the club at the end of the current campaign.
"We are very happy that Dani Alves has stayed here [this season]," he said at a news conference on Tuesday.
"Both sides have agreed that his contract will finish in 2015."
Dani Alves moved to Camp Nou in July 2008 for a reported €38 million fee from Sevilla, where he won the Copa del Rey in 2007 and the UEFA Cup on two occasions during his six-year stay at Ramon Sanchez Pizjuan.
His success has continued with the Catalan giants and he has won four La Liga titles, two Copa del Reys and two UEFA Champions League medals during his time at Camp Nou.
Barca have already began preparing for life without Dani Alves by signing full-back Douglas Pereira from Sao Paulo last Friday.
