Queiroz took charge of Iran in 2011 and lead then to the 2014 World Cup finals.
While no statement has been released by the Iran Football Federation regarding Queiroz' future the Portuguese coach did say that he was going to quit after their loss in a friendly international on March 31.
In a chat with the BBC, Queiroz said that he had no option but to resign.
"Based on the words of the president, there is no other option," he said.
"We feel the team and the players are doing great and everybody has a lot of pride every time Iran play. But unfortunately the federation don't see it like all the other people.
"We've been preparing with no support, no friendly games, no money, no salaries. But for them it's not enough."
After leading Iran to the 2014 World Cup where they finished bottom of Group F, he decided to stay on and lead the team to the Asian Cup where they reached the quarter-finals.
Iran Football Federation president Ali Kafashian said in a television interview that he wanted Queiroz to carry on as manager.
But after a meeting between the two, the Portuguese said that they had agreed to go their separate ways.
"The president agreed there was no other option but to go our separate ways.
"We've been forced to make a mutual agreement. But now it looks as though I'm the bad boy in the story.
"But for a peaceful agreement, I don't mind becoming the bad boy because the fans know the truth," he added