The 39-year-old, who has spent five years at the J-League outfit, admitted his decision is due to lack of playing time.
The 2010 World Cup winner, who won four Champions League titles with Barcelona, broke down in tears in a press conference on Thursday to announce his departure.
Iniesta has made just three substitute appearances this season but despite that, he told reporters that he will continue his playing career elsewhere.
"I have to tell you the truth, I don't know," Iniesta said when asked which club he will be playing for next.
"I want to keep playing football. I feel like I am capable of still playing. But as this chapter closes, we'll see what's possible. I want to finish my career on the pitch playing, and this is what I'm hoping to do."
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The Spaniard joined Vissel Kobe in 2018 after calling time on a 16-year spell at Barcelona.
He moved to Japan on an initial three-year contract but extended his stay by a further two years.
His final appearance for the J-League leaders is likely to be against Consadole Sapporo on July 1.
"It's a very emotional day after so many years," Iniesta added. "I tried to give my best on and off the pitch. I am very proud of that.
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"I was made to feel welcome here from the first day."
Iniesta is famed for scoring Spain's winning goal in the 2010 World Cup final against the Netherlands.