Carlos Queiroz had already announced his resignation. AFP/Getty Images

Carlos Queiroz has officially stepped down as Iran coach after their 3-1 loss to Sweden in a friendly on Tuesday night.

The former Real Madrid and Portugal boss has reportedly been involved in a dispute over income tax with the Iranian Football Federation (FFIRI), and chose to make their friendlies this weekend against Austria and Sweden his last matches in charge.

He had announced his decision earlier in March.

Speaking after Tuesday's loss, he said on the FFIRI website: "After four years of work with the national team, I am proud of the team and the individual players.

"Now I am sad to leave the team, but that's life and I'm happy to be moving forward."

Queiroz, 62, became Iran coach in 2011 and qualified them for the 2014 World Cup.

After the tournament, he signed a new deal which was due to run until the 2018 World Cup in Russia.