Iranians were barred from attending last year's hajj after the two countries severed diplomatic ties and failed to agree on security measures.
"Most of the questions up for discussion have been resolved and a couple of issues are remaining," the ISNA news agency quoted Ali Ghazi Askar, the Iranian supreme leader's representative for hajj affairs, as saying.
"If those questions are resolved, we hope pilgrims will soon be sent to Saudi Arabia," he added, without giving details.
Last year marked the first time in nearly three decades that Iran was barred from the pilgrimage, considered one of the most important religious obligations for able Muslims.
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A key issue has been compensation for the families of hundreds of people killed in a stampede during the 2015 hajj. Iran says 464 of its citizens died in the disaster.
Ghazi Askar said Iran had also raised the sexual assault of two Iranian teenage boy pilgrims by Saudi police in Jeddah airport earlier that year.
Tehran suspended pilgrimages to Saudi holy places -- except during the hajj period -- in protest at the incident.
"If these problems are resolved and it becomes clear for us that they have been punished, the lesser hajj will also be restored."
The lesser hajj -- or "umrah" -- refers to pilgrimages outside the hajj period, which lasts around five days and varies depending on the Islamic calendar.
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