According to the proposal, one rial should correspond to 10,000 rials in today's value.
The currency change must also be approved by the Guardian Council and signed by President Masoud Pezeshkian before it becomes a reality.
In May, the country's central bank chief Mohammad Reza Farzin said he would drive the issue and stated that the Iranian rial does not have a "high status" in the global economy.
The rial has plummeted after the US sanctions imposed in 2018 after US President Donald Trump terminated the nuclear agreement JCPOA.
10,000 rials correspond to just over 2 Swedish kronor.
