IFF president Ali Kaffashian was expected to announce the appointment of the 57-year-old as national team boss on Tuesday on a four-year contract, but due to the political problems in Tehran, Queiroz has backed out of the negotiations.
A source close to the Portuguese tactician has told Goal.com that he is instead going to become manager for the Kingdom of Saudi Arabia (KSA).
Queiroz was heavily criticized for Portugal's performance at the 2010 World Cup, where the Seleccao lost 1-0 to Spain in the Round of 16.
