The 54-year-old coach has most recently worked at the Qatari club Umm Salal.
Some of his previous managerial posts include the Mali national team, Al-Nassr and Al-Ettifaq.
Carteron replaced Portuguese coach Jose Morais.
Sepahan leads the Iran football league with 21 points out of 10 matches.
The team also has a chance to advance to the 2024-25 AFC Champions League Two next stage.