The 61-year-old Brazilian coach was Ukraine’s Epicentr-Podolyany head coach.
He has worked as assistant coach of the French and Czech Republic volleyball teams in 2020-2021.
Italian coaches Angelo Lorenzetti, Roberto Piazza and Alberto Giuliani, Russian Vladimir Alekno, Belgian Vital Heynen and Iranian Saeid Marouf were also among the candidates for the job.
Paes has been appointed as Iran's head coach until the end of the 2024 Olympic Games, with the option to extend for two more years.
Iran's chances of reaching the 2024 Paris Olympics are slim due to poor results in the 2023 FIVB Volleyball Nations League and the Olympic qualifiers.