The 33-year-old had handed in a transfer request two weeks ago after becoming disillusioned with life at the club.
Manchester City were waiting to do a deal but Barca stood firm over Messi's release clause.
That stands at €700m, an extortionate amount that basically ruled out a move away.
And rather than take Barcelona to court, Messi has decided to see out his contract - which comes to an end next summer.
He made his decision in a heartfelt interview, where he condemned Barca president Josep Maria Bartomeu.
And the Nou Camp outfit have shared an image of Messi wearing the new kit for the first time since his U-turn.
In the end, his love for Barcelona is what stopped him from pushing forward with a departure.
However, what it means for his future next season remains to be seen with his current contract set to expire.
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The six-time Ballon d'Or winner insisted he believed he could leave the Catalan club whenever he wanted.
But he revealed he had been misled by Bartomeu, who he said "did not keep to his word".
"I thought and was sure that I was free to leave," Messi told Goal.
"I told the president and, well, the president always said that at the end of the season I could decide if I wanted to go or if I wanted to stay and in the end he did not keep his word.
"Now I am going to continue in the club because the president told me that the only way to leave was to pay the 700m clause, and that this is impossible.
"Now they cling to the fact that I did not say it before 10 June, when it turns out that on 10 June we were competing for La Liga in the middle of this awful coronavirus and this disease altered all the season.
"There was another way and it was to go to trial. I would never go to court against Barca because it is the club that I love, which gave me everything since I arrived.
"It is the club of my life, I have made my life here."