Tokyo will give Tehran an equivalent of $10 million in grants to help it buy medical equipment from Japanese manufacturers, Japan's main broadcaster NHK reported.
Under a deal, which was signed Saturday by Iran's acting health chief Mohsen Asadi-Lari and Japan's ambassador to Iran Hiroyasu Kobayashi, Tehran will purchase medical equipment from Japan through tenders and other channels, the broadcaster said.
Iran's medical services reportedly deteriorated after years of seclusion caused by international sanctions. In return for its aid, Japan hopes to get a foothold in the lucrative Iranian market.
Iran returned to the international market last year following a July deal with six mediators - Russia, the United States, China, France, Britain and Germany. The agreement guaranteed the peaceful nature of Iran's nuclear program in exchange for sanctions relief.