The UK's International Hospitals Group (IHG) has signed a memorandum of understanding on a €1.8bn deal to build several cancer research hospitals in Iran, according to Tasnim News Agency.

The signing reportedly took place in the Iranian Embassy in London on October 23 with the participation of representatives of Iran’s Ministry of Health and Education.

The deal will also see the British firm, based in Buckinghamshire just outside London, playing an advisory role for several new medical centres.

Iran’s ambassador to London, Hamid Baeedinejad, said the deal with IHG took several months to draw up. A formal contract would be finalised within a few weeks, he added.

The Iranian health ministry and IHG are also to exchange information, data and latest findings in the field of cancer treatment and are to cooperate in training employees.

“In addition to attracting financial resources to build, equip and run these centres, the British company will cooperate in transferring the latest medical knowhow regarding cancer treatment and training of personnel,” the ambassador noted on his personal Telegram messenger channel.

When completed, the project is to result in one of the biggest cancer centres in the Islamic Republic.

Despite Iran being under punitive international sanctions in recent years, the country's indigenous medical industry has thrived with several expatriate Iranians returning home to open new hospitals and treatment centres.

Among the most high-profile of the returned expatriates is Dr Majid Samii, who recently constructed the biggest neurosurgery centre in the Middle East and Central Asia, with the backing of the Iranian government and Tehran Municipality.