Marfavi parted company with Saba and took charge Paykan in the Iran Professional League (IPL).
The 49-year-old coach replaced Mansour Ebrahimzadeh who stepped down as his job on Monday.
Behtash Fariba and Saket Elhami will assist Marfavi in the new post.
Former Esteghlal coach Parviz Mazloumi, former Sepahan coach Zlatko Kranjcar and former Persepolis coach Ali Daei were also among the candidates to take charge of the Tehran-based team.