The project – dubbed Shokooh Pars Tourism Train – was awarded to the consortium by Iran's Railway Network and officials say the ultimate goal is to encourage tourism train trips by the Iranians.
Based on a €25-million deal that was signed to the same effect, three major Austrian tourism companies will provide basic training as well as the necessary basic logistics support for the service.
Many are already speculating that the project has been inspired by several visits to Iran by Western luxurious tourism trains.
The UK-based Golden Eagle Luxury Trains has managed to launch three tourism train tours to Iran since 2014.
The deal is a further sign of the growing economic relations between Iran and Austria. It also comes on the heels of a landmark visit to Tehran by the Austrian President Heinz Fischer earlier this week, Press TV reported.
Fischer led a 230-strong delegation during his visit to the Islamic Republic that featured meetings with top Iranian officials for discussions on a series of issues of mutual interest.