Suzuki Motor Corp and Iran Khodro have agreed on supplying the Iranian market with four new models of the Japanese automaker, the Fars news agency says, Press TV reported.
The small car maker's executives visited Iran's largest automaker recently to discuss new cooperation after the removal of sanctions, it said.
Iran Khodro, meanwhile, has announced plans to introduce four new models of the Japanese company, Fars added.
It cited Swift, DZire compact and Kizashi mid-size sedans as well as SX4 as the models which Suzuki planned to sell in Iran.
Suzuki's production of Grand Vitara SUVs in Iran flagged under intensified sanctions which also forced the company to ditch plans to mass-produce the Kizashi model.
Iran is the Middle East's largest auto market with a population of 80 million who bought 1.1 million cars in 2014.
A recent conclusion of nuclear talks has set off a race among major international automakers to find a foothold in Iran.
French, German, Japanese and South Korean car makers have already held discussions for new tie-ups.
For Asian automakers, the Iranian market offers a fantastic opportunity because of appetite for foreign brands with good quality.
European and Asian companies, however, left Iran and sharply reduced business after imposition of fresh sanctions on Tehran in 2012.
Leading the fold were France's Renault and Peugeot which are on a fresh bid to conclude new manufacturing deals with Iranian companies.
Peugeot, which was the biggest-selling European car maker before the sanctions, faces an uphill task to reclaim the former ground. According to a local newspaper, Iran Khodro is seeking compensation from Peugeot for its unilateral withdrawal.
Germany's Mercedes-Benz has paid Iran Khodro 42 million euros in compensation for leaving Iran in the heyday of Western sanctions, Tehran-based media reports said recently.