The 29-year-old striker has joined Persepolis until the end of the season with the option to extend his deal by a further year.
Osaguona played for Iranian club Zob Ahan last year and left the team for South Korean football club Jeju United.
The ex-Nigeria forward has joined the Reds to help them win the Iran Professional League for the fourth successive time.
The Iranian team will also start the 2020 AFC Champions League in February where it face Al Taawoun of Saudi Arabia, Al Duhail of Qatar and Sharjah FC of United Arab Emirates in the group stages.