We demonstrate Rabi oscillations in nonlinear ionization of argon by an intense femtosecond extreme ultraviolet (XUV) laser field produced by high- harmonic generation. We monitor the formation of Ar2+ as a function of the time delay between the XUV pulse and an additional near-infrared (NIR) femtosecond laser pulse, and show that the population of an Ar+* intermediate resonance exhibits strong modulations both due to an NIR laser-induced Stark shift and XUV-induced Rabi cycling between the ground state of Ar+ and the Ar+* excited state. Our experiment represents a direct experimental observation of a Rabi-cycling process in the XUV regime.