Off contract in June, Iniesta has been waiting to discuss new terms with Barca management.
Marca says Barca have drawn up a proposal which will be for an initial two years, with the option of a 12-month rolling contract from 2020.
The new arrangement would also include a break clause on Iniesta's side, where he could leave for a free transfer either for a club outside of Europe (from China, MLS, etc) or a smaller team inside Spain, for eg. Albacete.
However, there will be no such agreement allowing Iniesta leaving for a European rival.
The ideal scenario for Barca would be for Iniesta to play out his days with the club before taking up a job with them off the pitch.