Faghani will vie for the award with the five Asian referees including Uzbek Ravshan Irmatov, who was selected as the best Asian referee in 2010, Yuichi Nishimura of Japan and Khalil Al Ghamdi of Saudi Arabia.
The 33-year-old referee, who became a FIFA referee in 2008, took charge of the 2009 AFC President's Cup Final between Regar-TadAZ Tursunzoda and Dordoi-Dynamo Naryn.
Faghani has been considered as a top referee in the Iran’s Professional League as well.
The AFC Referee of the Year will be awarded in Kuala Lumpur, Malaysia in November 23.