The 21-year-old was signed as a first-team player in January 2020 but his only league start came in a dead rubber at Derby County at the end of the Championship-winning season. He has made 17 substitute appearances.
But Poveda was always signed with the long-term in mind, and sporting director Victor Orta believes game-time at Ewood Park can bring him on.
“We feel Ian can make an impact here in the future and we’ve been very impressed with how Blackburn have developed players such as Harvey Elliott at Liverpool," he said.
“We hope Ian can get some game time and come back to us next season ready to fight.”