Iniesta joined the Japanese side in 2018 as his career with boyhood club Barcelona came to an end.
The midfielder was about to see his current deal expire but is now set to stay in the J League until 2023.
Iniesta has made 75 appearances for Kobe and scored 16 goals.
A statement posted on the club’s official website on Tuesday read: “We are pleased to inform you that we have agreed to renew the contract with midfielder Andres Iniesta (37) and extend it until 2023.
“With this contract renewal, we will continue to advance the projects we have been working on with Rakuten Group Co. Ltd. and Vissel Kobe since joining in 2018.”
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