The cash-strapped Segunda Division B outfit would have been demoted to the fourth tier of Spanish football on administrative grounds had they not settled the debt by noon on Friday.
However, Iniesta, the largest shareholder in the club at which he began his career, came to their aid, paying the outstanding wage bill out of his own pocket.
It is not the first time the 29-year-old has come to the rescue of Albacete as he injected €420,000 into the club in 2011.
Iniesta, who lined up for Spain in Thursday night's Confederations Cup semi-final clash with Italy, spent two years at Albacete before joining Barcelona's youth academy as a 12-year-old in 1996.
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