Australia has just lowered its travel warning for Iran - potentially putting a trip to the Islamic Republic on a holiday bucket list for keen travellers.

Previously Australians had been told to "reconsider their need to travel" to Iran, but the warning has now been lowered to "exercise a high degree of caution".

Australia has lowered its travel warning for Iran. Credit:Andrew Meares

The decision will be seen as a further sign of warming ties between the West and Iran after the landmark nuclear bargain struck this year.

The Coalition is also keen to convince Tehran to accept the return of thousands of Iranian asylum seekers that travelled by boat to Australia but are considered unlikely to be granted refugee status.