The former Persepolis coach will lead Iran in the three remaining matches in the 2010 World Cup qualifiers.
Newly-appointed coach Mohammed Mayelikohan was dismissed on Tuesday for the more obviously career threatening act of accusing all fans of Esteghlal, one of the country’s leading teams, of being “hooligans”.
Ghotbi inspired Persepolis to win Iran’s Professional League (IPL) title after six years last season.
Iran is scheduled to play North Korea on June 6. The team is fourth in the 2010 World Cup qualifiers in Group Two with six points, behind North and South Korea and Saudi Arabia respectively.