The redesigned Outlander, which curbs use of the conventional engine in favor of the twin electric motors, will be built in Japan and shipped to Iran, according to the report by Japan's Nikkei newspaper.
Plug-in hybrids, which employ both conventional engines and electric motors, can be charged at home.
Mitsubishi Motors has sold plug-in hybrids in Japan and Western Europe, with plans to broaden into the US and Eastern Europe this year.
Iran will be the first Middle Eastern market where it rolls them out. The country ranks around 20th among the world's auto markets, with annual sales of around 1 million units.
Mitsubishi Motors' Iranian sales volume grew 16-fold on the year to about 3,200 units in 2016. The company plans to increase Iran dealerships to about 50 from the current 41 this year and hopes to boost brand recognition and sales.