The 49-year-old coach has most recently worked as head coach in the Saudi First Division League side Al-Batin.
Esteghlal had been previously linked with Spanish coach Juan Ramon Lopez Caro but the two parties didn’t reach an agreement.
Iranian coaches Javad Nekounam and Mohammad Rabiei are also candidates to take charge of the Blues.
Portuguese coach Ricardo Sa Pinto parted ways with Esteghlal in early June.