IRIFF appointed Ghalenoei as head coach of the Iran national football team on 17 July 2006 to succeed Branko Ivanković. After finishing first in the qualifying round 2 points ahead of South Korea and then finishing first in the group stage of the final tournament in Malaysia, Iran lost to South Korea in the penalty shoot-outs of the Quarters Final match and was eliminated from the 2007 Asian Cup. Ghalenoei was heavily criticized by the press. After a period of discussion in the Iranian football federation, his contract was not renewed and national team was left with a caretaker manager for several months.