He replaced Iran and club legend Javad Nekounam in the head coach role at the nine-time league champions with immediate effect, the African sports media have reported.
The change was made due to the poor start to the season, where the two-time Asian Champions League winners are languishing 11th in the 16-team league after seven games.
Esteghlal are also in the AFC Champions Legue in the 12-team Group B, alongside Saudi Pro League sides Al Hilal, Al Nassr and his former club Al Ahli.
KI