The four-time WAFF champion defeated Iraq 2-1 at the King Abdullah stadium and booked a berth in the final.
The Persians will play the winner of the Yemen and Kuwait match on Sunday.
Jalal Hosseini’s header put the Iranians into the lead in the 58th minute. Iraq equalized the match when unmarked Mustafa Karim headed the ball into the net in the 71st minute.
Iraq’s Mohammad Ali Karim was sent off five minutes later after receiving a red card.
Mohammad Gholami scored winner for Iran with six minutes remaining.
Iran has won the title in 2000, 2004, 2007 and 2008.
Afshin Ghotbi’s team is preparing for the AFC Asian Cup which will be held in Doha, Qatar in January 2011. Iran has been drawn along with Iraq, North Korea and the UAE in the event.