Reporting "Asre Khodro", The 301 model will be assembled by IKCO under a joint-venture IKAP with the French automaker, local website Asbe Bokhar reported.
According to previous reports, the 2016 version of the car will probably come at 650 million rials ($17,350).
Peugeot 301 was originally released overseas in late 2012. The vehicle is currently produced in Vigo in Spain, Kaduna in Nigeria and Wuhan in China.
It has been on sale in the Turkish market for the past three years. It is 4,440 mm (174.8 in) in length, with a 2,650 mm (104.3 in) wheelbase and is powered by a range of three engines: a three-cylinder 1.2-litre VTi engine it shares with other smaller Peugeot models.