The 37-year-old joined Kobe after leaving Barcelona in the summer of 2018 and has so far racked up 77 appearances, scoring 16 goals and providing 18 assists.
Iniesta has won one Japanese Super Cup and one Emperor’s Cup to add to the nine La Liga titles, four Champions Leagues and a host of other trophies he won during his time with Barcelona.
Iniesta expressed his delight after the announcement on Tuesday, telling reporters: “Three years ago, we announced an exciting project here in Tokyo.
"The new challenge was a big one for me and my family. I am grateful to the chairman and the people involved in the club for their continued trust even after three years.
“Although it was a difficult period, we have built up history, such as winning titles for the club. Today is a special day.
“The most important thing for me is to feel that people around me value me. I want to continue with the passion I had when I came three years ago.
"I'm excited to be involved in the project for the next two years."
Iniesta won 131 caps for the Spanish national team, winning two European Championships and one FIFA World Cup.
