The Iranian government approved on Tuesday a draft resolution to cancel visa requirements for Egyptian tourists, reported an Iranian news agency.
Egyptians are allowed to stay for a 20- day visit in Iran, according to Feras news agency.
This step comes as a reinforcement of ties between the two countries.
Ties between Egypt and Iran significantly improved over the past few months after the election of Islamist President Mohamed Mursi. Diplomatic relations between the two countries were cut following Tehran's Islamic revolution in 1979.
More than 50 Iranian tourists arrived in Upper Egypt earlier this month as part of a bilateral tourism agreement signed in February. But hardliner Sunni Islamists rejected this step in fear that Iranians will spread Shi'ite Islam in Sunni Egypt.