
The spokesman and deputy president of the Iranian Football Federation (FFI) told ISNA that a three-year contract was signed between Clemente and the FFI in Bilbao on Thursday morning.
According to the Mehr news agency, the FFI had preferred to hire a German coach with Lothar Matthaeus and Christoph Daum among the favourites.
Mehdi Taj however said unlike the other candidates, Clemente had much lower financial expectations.
Clemente, who also who was at the helm in Spain from 1992 to 1998 and also coached several Spanish clubs such as Athletico Madrid and Athletico Bilbabo, will come to Tehran next week but start his job with Iran's first World Cup qualification game against Syria on February 6 in Tehran's Azadi stadium.
DPA