An official ceremony to welcome visiting Alyev was held at the Sa’dabad Cultural Complex in Tehran in the morning.
The Azeri president’s visit to Iran comes at the invitation of his Iranian counterpart Hassan Rouhani.
The two leaders are expected to sign several agreements on Tehran-Baku trade and economic cooperation.
Azerbaijan and Iran have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991, and diplomatic relations between the two countries were established in 1992.
Data from the State Customs Committee of Azerbaijan show that trade turnover between the two countries amounted to $281.03 million in 2013, which is 6.13 percent higher than 2012. The figure stood at $263.785 million in 2012, according to Azernews.
Iran imported $73.347 million worth of goods from Azerbaijan in 2013, while its exports to Azerbaijan stood at $207.683 million during the same period.