Chairman of Iran Air or HOMA (the Persian acronym of the airline), Farhad Parvaresh and Harry Hohmeister member of Lufthansa Executive Board signed the document on Wednesday at the presence of Abbas Akhoundi Iran's Minister of Roads and Urban Development.
Iran Air and the German carrier are going to work on technical and commercial spheres as well as aviation software systems, aerial navigation and its restructuring.
Following the implementation of the Joint Comprehensive Plan Of Acrtion (JCPOA) in July 2015 and the removal of Western-imposed sanctions against Tehran, European companies, especially Germans, have become very keen to benefit from Iran's lucrative market.
Iran has even entered talks with the Airbus to buy more than 100 civilian planes.
The country's air fleet suffered heavily due to the unfair sanctions imposed on the Iran for its peaceful nuclear programs.