The 61-year-old coach penned a three-month contract with the Iranian team.
Bauermann will head Iran in the 2015 FIBA Asia Championship which will take place in China from September 23 to October 3.
If the team can qualify for the 2016 Olympic Games, the Iranian federation will extend Bauermann’s contract until the 2016 Olympic Games.
Bauermann led Germany basketball team from 2003 to 2011.
He has also led Bayer Leverkusen, Bayern Munich and Poland national basketball team.