Tehran - The Iranian football federation has extended the contract of Carlos Queiroz according to Iranian state TV.
Tuesday's report did not elaborate on details of the length of the agreement.
The 61-year-old had previously spoken out about leaving his post, citing a failure to agree financial terms over a new deal.
However, with a new agreement now in place, Queiroz has vowed to win a medal in next year's Asian Cup as well as securing qualification for the 2018 World Cup in Russia.
The former Real Madrid head coach took over in 2011 and successfully guided the team to the 2014 World Cup in Brazil.
However, Queiroz's side finished bottom of Group F, which saw group winners Argentina advance to the final with Nigeria finishing runners-up.