The 59-year-old coach, who currently leads Gol Gohar in Iran league, replaced Carlos Queiroz who headed Iran in the 2022 FIFA World Cup.
The details of the deal will be announced after Gol Gohar and Naft Masjed Soleyman match, scheduled for Sunday.
Felix Sanchez, the former Qatar coach, was also a candidate to take charge of Team Melli but he was appointed as Ecuador coach on Saturday.
Ghalenoei had previously announced that he would not accept the federation’s request to lead Iran but he changed his mind to take charge of Team Melli.