Iran legend Ali Daei has missed out on the vacant coaching role at Sepahan, with the 2011 Pro League champions appointing former boss Luka Bonacic.
Croatian Bonacic, who coached Sepahan from 2006 to 2008, has signed a one-year deal with the club and replaces Amir Ghalenoei who has moved to Tractor Sazi.
Bonacic joins Sepahan having guided the club to 2007 and 2008 Hazfi Cup success along with a place in the final of the 2007 AFC Champions League where they lost to Urawa Red Diamonds.
The 56-year-old Croatian was in charge of second tier club Gostaresh Foolad who narrowly missed out on promotion last term.
Bonacic was expected to be appointed coach at Shahin Bushehr but has opted for the Sepahan job.
Ali Daei, who walked away from the coaching role at Persepolis citing a conspiracy at the club, had been one of the favourites for the vacant Sepahan position.