Following a 2-2 draw through 120 minutes, Saipa defeated its opponent 3-1 in penalty shootout in Tehran’s Azadi Stadium.
Saipa defender Samuel Sarfo was sent off in the 33rd minute after receiving his second yellow card.
“We deserved to win the match because we were reduced to 10 men from the first half. I am satisfied with the way my players played against Esteghlal,” Saipa coach Ali Daei said in the post-match news conference.
Saipa will face Sanat Naft in quarter-final.
The Hazfi Cup is the Iranian football knockout cup competition, run by the Iranian Football Federation.
Esteghlal is the title-holder and most decorated team with seven titles.