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Yes, certainly Shree Ved-Vyasa is still alive. He being Chiranjeevi (immortal) is still alive.
The answer is clearly given about him in Shreemad Bhagvat Purana - Skandha 8 - Chapter 13 - Shloka 15-16.
It's said in those shlokas that Ved-Vyasa is still alive and living in their respective ashramas by Yog-Bala or Yogic Power.
गालवो दीप्तिमान्रामो द्रोणपुत्रः कृपस्तथा ।
ऋष्यशृङ्गः पितास्माकं भगवान्बादरायणः ॥15॥
इमे सप्तर्षयस्तत्र भविष्यन्ति स्वयोगतः ।
इदानीमासते राजन् स्वे स्व आश्रममण्डले ॥16॥
gālavo dīptimān rāmo
droṇa-putraḥ kṛpas tathā
ṛṣyaśṛńgaḥ pitāsmākaḿ
bhagavān bādarāyaṇaḥ
ime saptarṣayas tatra
bhaviṣyanti sva-yogataḥ
idānīm āsate rājan
sve sva āśrama-maṇḍale
O King, during the eighth manvantara, the great personalities Galava, Diptiman, Parasurama, Asvatthama, Kripacarya, Rishyasringa and our father, Vyasadeva, the incarnation of Narayana, will be the seven sages. For the present, they are all residing in their respective asramas.SB 8.13.15-16
I don't that think he is visible to us directly because it's said that these people are living in their ashramas with their yogic powers. I think we need some divine Power (Teja) to locate and to see him. But I believe that if we wish he can appear before us if we call him with pure devotion. Since he is an Avatara of Lord Vishnu. Good Luck
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Parashurama, VedaVyasa - Vishnu incarnations
Ashvatthama - Shiva incarnation
Kripacharya - Brahma incarnation
...fun times in the next one!!
Wow. I never knew VedVyas is Lord Vishnu's Avatar!
One of the 24 ( extended ) Avatars