Thiam joined Iran’s Esteghlal in February and helped the team advance to the 2018 AFC Champions League quarter-final.
The Senegalese had been linked with a move to Al Kuwait but Esteghlal club has announced that he will extend his contract within the next few days.
Thiam reportedly wanted to part company with Esteghlal because he had been told he has tax problem in Iran.
Thiam has said he will not return to Iran until the problem is solved.