Representatives of both firms signed the deal in Kerman on Monday.
Chief executive of Kerman Motor Saman Firouzi said that his firm will also launch Hyundai Accent production line in September 2017.
"Our target is to employ 10,000 people by 2019," he added.
The company previously agreed with Hyundai at the end of 2016 to begin production of the Hyundai i10 and i20 hatchback models which are likely to go on sale following the Iranian New Year.
The new agreement follows a similar deal with Kerman Motors dating back to 2004 when the company used to produce the Accent model in the company's base.