The 60-year-old coach, who currently lives in Hungary, will replace Mostafa Hashemi in Team Melli.
Bosnian coach Zlatko Jovanovic will be named as Armaghani’s assistant in the team.
Armaghani headed Iran in 2001-2 and has also worked in Hungarian clubs Vasas SC and Óbudai Kaszások.
Iran is second in Group D of the 2023 FIBA Basketball World Cup qualification.
The Persians are scheduled to meet Kazakhstan and Syria on July 1 and 4 respectively.