The 61-year-old Portuguese coach is expected to fly to Tehran in the next few days to finalise contract details.
The former Portugal international, who won the 1987 European Cup and Intercontinental Cup with Porto, led Switzerland during Euro 96 where they were eliminated at the group phase.
However, he failed to lead Portugal to the 1998 World Cup in France. Jorge, who also failed to guide Cameroon to the 2006 World Cup, has also enjoyed spells with PSG, where he won the domestic title in 1994, CSKA Moscow and Saudi Arabia's Al-Nasr.
Iran have been drawn in Group E of the upcoming World Cup qualifiers against Kuwait, United Arab Emirates and Syria.