The 42-year-old coach was head coach of Borussia Dortmund last season.
The record of German coaches in Iran is not exactly brilliant. Pierre Littbarski, Hans-Jürgen Gede, Rainer Zobel and Winfried Schäfer have had little success in their engagements in recent years.
Persepolis, which parted ways with Spanish coach Juan Carlos Garrido last week, has also been linked with former Croatia coach Slaven Bilic.
Defending champion Persepolis sits third, five points behind leader Sepahan in the Iran football league.