Vinícius Júnior, Lucas Vázquez, Jesé and Nacho's brother Alex all shared the news on social media within hours of the announcement.
The warmest tribute came from his former head coach at Al Qadsiah, Michel González, who wrote: "Thank you for confirming every day that it was worth recommending your signing. You are an example as a person and as a professional in that duo that, thanks to your wife, leaves good vibes wherever you go. All the best to you both."
Nacho, 35, joined Al Qadsiah last summer after his Real Madrid contract expired and has captained the club through both seasons.
Under Brendan Rodgers, the club currently sits fourth in the Saudi Pro League behind Al-Ahli, Al-Hilal and Al-Nassr. He has made 33 appearances this season, one fewer than in his debut campaign.
His adaptation to Saudi Arabian football has been cited internally as a model of professionalism.
The renewal was not considered a formality — several clubs in Europe had held low-level discussions — but Nacho chose to extend his commitment to a project he believes in.