Iranian Foreign Minister Hossein Amir Abdollahian meets with Saudi Arabia's Foreign Minister Prince Faisal Bin Farhan Al Saud in Cape Town, South Africa. File/Reuters
Saudi Arabia severed relations with Iran in 2016, after its embassy in Tehran and consulates in the northwestern city of Mashhad were attacked during protests.
Iran's diplomatic mission, which was expelled by Saudi authorities, will return under the leadership of Alireza Enayati, who previously served as Iran's ambassador to Kuwait.
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"The opening of the Iranian embassy will take place Tuesday at 6pm local time (1500 GMT) with the presence of the newly appointed Iranian ambassador" to Saudi Arabia, a diplomatic source in Riyadh told the media on Monday.
Saudi Arabia has yet to confirm when it will reopen its embassy in Tehran or its pick for ambassador.
Iranian media had named Enayati as the Islamic republic's Saudi envoy last month.
He had previously served as assistant to the foreign minister and director general of Gulf affairs at the foreign ministry, according to Iranian media reports.
Agence France-Presse