Persepolis general manager Mohammad Ruyanian said attacker Ali Karimi has re-signed at the club, abandoning his plans to leave.
The 33-year-old former Bayern Munich man's contract with the Tehran club has expired, and he admitted last week he had held unsuccessful negotiations regarding a new deal.
However, Ruyanian said - according to the Tehran Times - that the two parties had struck a deal to keep him with the Reds.
"We have reached an agreement with Karimi and the valuable player will stay here. Hopefully, he will stay at Persepolis for 10 years more," Ruyanian said.
Rumours spread of a rift between Karimi and coach Mustafa Denizli in April, before Ruyanian publicly moved to dispel the speculation.
However, Karimi has often spoken about the fact he would be leaving Persepolis, commenting last week: "No, I'm not going to stay. I opened negotiation with Mr Ruyanian but we didn't reach an agreement."
The situation now has changed with Denizli understood to be set to join Turkish outfit Besiktas, while Persepolis are chasing a new coach with Gabriel Calderon and Bruno Metsu among the candidates.