The Socceroos could be set to face former rivals Iran for the first time in more than 20 years, with discussions taking place aimed at staging a high-profile friendly in Australia before the 2018 World Cup.

Fairfax Media can reveal Football Federation Australia are deep in negotiations with their Iranian counterparts to play a senior international between the two nations for the first time since the infamous 1997 World Cup qualifier at the MCG.

A deal is yet to be done but it's understood talks have advanced as the FFA sought to strengthen its diplomatic ties with Iranian football. Should they be successful in bringing Iran to Australia, a friendly will likely be held in the March international window in what both federations hope will be a key part of their preparations for Russia 2018.

FFA chief executive David Gallop confirmed that negotiations were taking place.