Carlos Queiroz has agreed a three-year deal to coach Iran as they seek to reach the 2014 World Cup in Brazil.
Queiroz was in charge of Portugal for last summer's World Cup but was sacked in September having been handed a six-month suspension over an incident involving doping control officers.
However, the ban was overturned last month and, according to Press TV, he has agreed a $2 million-a-year deal to lead Iran. He had been close to taking the job in February but apparently turned down the position as his family had reservations about moving to the country.
"I am here in Iran to help the team make it to the 2014 World Cup," he told ISNA. "This is my most important aim and I hope with everyone's help we can make it."
Iran have appeared at the 1978, 1998 and 2006 World Cups but have never been beyond the first round. They reached the quarter-finals of this year's Asian Cup.
Queiroz, who led Portugal to the second round of the 2010 World Cup, worked as Sir Alex Ferguson's assistant at Manchester United either side of a season-long stint in charge of Real Madrid in 2003-04. He has also coached the national sides of United Arab Emirates and South Africa.