Barcelona president Joan Laporta admits Ilkay Gundogan was a priority signing for coach Xavi.
The former Manchester City midfielder enjoyed his signing ceremony yesterday.
Laporta said: "The first player Xavi asked for this summer.
"It's an honour he chose our offer. We made a good proposal financially, but it was not the best he had. He preferred Barca's prestige and history over other offers."
Barca sports chief Mateu Alemany also said: "Since January, there have been difficult negotiations. Other offers were bigger financially than ours and it's not easy to come to an understanding with the agents."