According to Fanatik, Denizli will sign a contract with Tractor Sazi until the end of the season for a fee of $400,000.
Denizli, who has already worked in Iranian football teams Pas and Persepolis, will replace Yahya Golmohammadi in the Tabriz-based team.
Former Werder Bremen coach Alexander Nouri and former Turkey national team coach Kazım Ersun Yanal are among the candidates to take charge of Tractor Sazi.
Tractor Sazi is preparing for the 2018 AFC Champions League, where it has been drawn with the UAE’s Al-Jazira, Al-Ahli of Saudi Arabia and Winner Play-off West 3 in Group A.