Rakitic, 30, has developed into one of Europe's finest midfielders since joining Barca from Sevilla back in 2015 for a reported €18m.
Having won the UEFA Champions League and three LaLiga titles over the past four season's, Paris Saint-Germain has tested the resolve of the Croatian with a mouth-watering offer.
With the Blaugrana confirming their stance that the 2018 FIFA World Cup finalist was not for sale, the Ligue 1 side submitted a final €90m bid for the former Basel star.
However, the player has now officially ended the pursuit by signalling his intention to remain in Spain.
"There has been a lot of talk, but it's done. I'm going to stay here, with a huge amount of excitement," he told Barca TV.
"Honestly, there is nothing better than defending this crest. I'll give my best and that's that.
"It's been a few days of pressure but I've realised that the most beautiful thing is being in Barcelona and to keep going for everything. I'm happy and proud."
The 30-year-old added to Spanish radio: "My family and I are very happy in Barcelona. I haven't had doubts about my future. The most important thing is that I want to stay.
"For me, it's a privilege to defend this crest. To be able to defend the shirt of this club is the greatest thing there is.
"No club could offer me what I have at Barcelona."