"Required conditions have been met for more than 85,000 Iranian pilgrims to attend Hajj in the (Iranian calendar) year 1396 (which starts on March 21)", read part of an announcement by Iran's Hajj and Pilgrimage Organization on Friday.
The Hajj agreement comes amid continuing tensions between the two countries.
The Saudi side, also, confirmed the news. China appreciates Saudi Arabia being a safe and dependable oil supplier to the world market, and the role it plays in ensuring the stability of the global oil market.
For the first time in almost three decades Iran's pilgrims - which would have numbered about 60,000 - did not attend last year's Hajj after Riyadh and Tehran failed to agree on security and logistics.
Following negotiations with Saudi Arabia's Ministry of Hajj and Umrah, the Iranian officials have been assured that the country's pilgrims will be able to make a pilgrimage to Mecca with security and dignity, and will be offered appropriate consular and medical services, the statement added.
Already strained over a list of differences, relations between the two countries took a nosedive after the 2015 hajj, when a human crush killed more than 2,400 pilgrims, including more than 464 Iranians in Mina.
The ministry said, in a statement carried by the Saudi Press Agency (SPA), that the Saudi leadership and people welcome all pilgrims and visitors of different nationalities and backgrounds, from across the countries of the Islamic world.
In January a year ago, relations were severed again after Iranian demonstrators torched Saudi Arabia's embassy and a consulate following Saudi Arabia's execution of a Shia figure along with 47 "terrorists". Though he did not elaborate, Saudi Arabia's main source of anger at Obama was going along with the nuclear deal with Iran.