The central defender, who turns 38 on July 28, was out of contract at Estadio Son Moix but has now agreed a fresh deal.
New Mallorca boss Benito Floro insisted he wanted to keep on Nadal, and the veteran stopper has expressed his delight at the chance to prolong his career for a further season.
"I am in good shape and I want to play for at least one more year," Nadal declared.
"My desire is to retire at the club I have always loved, Mallorca."
