Kranjcar has agreed to steer Persepolis in the next season of Iran's Premier League, Mehr news agency reported, adding that he will arrive in Tehran on Thursday to finalize his deal.
Details of his contract have not yet been officially announced, but Goal.com said Kranjcar signed a $450,000 deal with Persepolis.
The 52-year-old began his coaching career in Croatian club HNK Segesta and joined Croatia Zagreb in 1994, when he won the Croatian championship and cup in the first season.
Leaving the club in 1996, Kranjcar worked in several Austrian and Croatian clubs before rejoining Croatia Zagreb in 1998 and leading the club to another win in both the Croatian championship and cup as well as to an appearance in the UEFA Champions League.
Kranjcar became Croatian national team's new coach after the end of Euro 2004. His contract was not renewed following Croatia's poor appearance in the 2006 World Cup.
His clubs after the World Cup include Croatia Sesvete, the UAE's Al-Shaab and DAC 1904 Dunajska Streda.