Persepolis’s newly appointed coach Mostafa Denizli had last week said the team would not sign the veteran midfielder in the transfer window.
Mahdavikia was due to join Persepolis football team at the summer but team’s coach Hamid Estili rejected an offer for him and the 34-year-old player joined Damash.
Mahdavikia, who joined Persepolis on a six-month contract on Saturday, had said that he is keen to end his career at his former club Persepolis.
“I am so happy to return to my favorite team. Hopefully I can fulfill the expectations of the fans. I met Mr. Denizli last night and talked about the situation,” Mahdavikia said.
Mahdavikia played three years for Persepolis before moving to VfL Bochum in 1998.
He also played for Hamburger SV and Eintracht Frankfurt.
Mahdavikia featured Hamburg SV All-Stars against Zidan & Ronaldo and Friends during "Match against Poverty" in Hamburg in mid-December.