The veteran Brazil international was detained in Catalunya on Friday over an allegation made against him in December 2022 during a visit to a Barcelona nightclub.
Alves was taken to the Mossos d'Esquadra de Les Corts police station before the Ciutat de la Justicia ruled that the former Barcelona full-back should be jailed without bail while investigations continue.
His former employers, Mexican side Pumas, reacted by terminating the 39-year-old's contract, which was due to expire in the summer of 2023.
Current Blaugrana coach Xavi shared an illustrious career with Alves as a player, boasting five La Liga titles, three Champions League trophies and three Copa del Rey crowns to their name, among other accolades.
The pair linked up once more when the veteran full-back re-joined Barcelona just days after Xavi took over as head coach in November 2021, with Alves turning out for 17 matches before his move to Liga MX.
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Xavi was shocked to hear about the Alves arrest as he reacted to the news on Saturday.
“It’s difficult to comment on a situation like this," the Blaugrana boss said. "I am surprised, shocked, in a state of shock. It’s a question of justice. Justice will rule whatever it is. I feel very bad for Dani. I’m in a state of shock about how he is with us.”
Alves has since denied all allegations, stating: “Yes, I was in that place, with more people, enjoying myself. And people who know me know that I love to dance. I was dancing and enjoying myself without invading the space of others.
“I don’t know who that lady is. You arrive at a bathroom and you don’t have to ask who’s there. I have never invaded anyone’s space. How am I going to do it with a woman or a girl? No, for God’s sake.”