The 26-year-old striker joined Sumgayit in 2018 from Machine Sazi and now has returned to Iran to play for his hometown team Tractor.
Babaei is Tractor’s first signing for the new season.
Tractor has recently won Iran’s Hazfi Cup title and will represent Iran at the next year’s AFC Champions League.
Babaei played 29 times for Sumgayit and scored 13 goals.