Iran will build a €3bn ($3.8bn) rail line extending from the south-east to the north-east of the country.
The Chabahar-Zahedan-Mashhad railway is expected to stretch 1,350km, according to tehrantimes.com.
The project is intended to start with an initial budget of €60m ($76m).
The Iranian Government is attracting domestic and foreign investments for the project.
