The former Barcelona midfielder joined Kobe in 2018 after a glittering career at the Catalan club where he won 30 trophies. He also won the World Cup and back-to-back European Championships with Spain.
"We regret to announce the departure of Andres Iniesta from our club," Kobe said in a statement.
"For five years since joining, we express our heartfelt gratitude to Iniesta, who has made significant contributions to Vissel Kobe."
Iniesta will leave Kobe after their home match against Consadole Sapporo at Noevir Stadium on July 1. He has made 133 appearances for Kobe so far, winning the 2019 Emperor's Cup and the Japanese Super Cup in 2020.
What he'll do next is unclear, but he doesn't plan to retire immediately and wants to find the right final club of his career.
"I want to finish my time here properly and then see what options are available to me," he said.
"I want to keep playing and then retire while I'm still active. That's difficult for me to do here, so I want to find a place where I can eventually retire."
