Iran's parliament has passed a bill allowing the government to slash four zeros from the rial.
Iran's national currency will be changed from the rial to the toman, which is equal to 10,000 rials, under the bill.
Iran's state TV said the Central Bank of Iran will have two years to "pave the ground to change the currency to toman".
The bill also needs the Guardian Council's ratification before being implemented. The council oversee the parliament's legislation.
The idea of removing four zeros has been floated since 2008, but gained strength after 2018, when US President Donald Trump exited Iran's 2015 nuclear deal and re imposed sanctions, as the rial lost more than 60 percent of its value.
The Iranian currency was trading at about 156,000 rials per dollar on the unofficial market Monday, according to foreign exchange websites.