The only Iranian team in the current season will meet the Riyadh-based team in Doha’s Al Janoub Stadium on Thursday.
According to Tehran Times, Foolad will be appearing in the last eight of the competition for the first time, having defeated another Saudi Arabian side Al Faisaly 1-0 on Monday.
Saudi Arabia’s Al Shabab will take on Al Duhail from Qatar on Thursday.
The draw sets up the prospect of an all-Saudi semi-final on Sunday, with the winner going on to face Japan's Urawa Red Diamonds in the final over two legs on April 29 and May 6.
Japan’s Urawa Reds booked their place in the tournament's decider in August and the final will be played over two legs. The first will be in the West Zone on April 26 with the second in Saitama, Japan, on May 6.
MNA/TT