Rakitic will stay in Seville until the summer of 2024 in a deal that could end up costing Sevilla a total of around €10.5m (£9m/$12m) including variables.
The 32-year-old was close to leaving Barcelona last summer, but a reported move to either Juventus or Paris Saint-Germain could not materialize.
Barca released an official statement on their website on Tuesday confirming Rakitic’s departure.
The statement read: "FC Barcelona publicly expresses its gratitude to Rakitic for his commitment and dedication and wishes him good luck and success in the future.
"Versatile, hard-working and with a good vision of the game, he ends his career as a Barca player with 310 games, in which he has made 40 assists and 36 goals.
"This Wednesday, September 2, starting at 11am, the farewell ceremony and subsequent telematic press conference of the player will take place."
Rakitic enjoyed an impressive first stint with the Andalusian club where he captained them to Europa League glory in the 2013/2014 season before leaving for Barcelona in the same summer.
The former Schalke 04 midfielder scored 32 goals and provided 41 assists in 149 appearances at the Ramon Sanchez-Pizjuan Stadium in his first spell.
Rakitic enjoyed six trophy-laden years at Barcelona and was part of the Luis Enrique team that won the treble in the 2014/2015 season.
