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Four of seven members of the women's football delegation who originally sought to stay in Australia have now chosen to return home.
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The trio have been named by human rights activists in the Iranian diaspora as Zahra Soltan Meshkehkar, Mona Hamoudi, and Zahra Sarbali.
Concerns grew for the Iranian team after they were silent for the country's anthem in their opening Asian Cup match against South Korea on 2 March - which led to them being branded "war traitors" in Iran.
Confirming the decisions, Australia's home affairs minister said his government had done everything it could to ensure the women were given the chance to have a safe future in the country.
"Australians should be proud that it was in our country that these women experienced a nation presenting them with genuine choices and interacted with authorities seeking to help them," Tony Burke said in a statement.
"While the Australian government can ensure that opportunities are provided and communicated, we cannot remove the context in which the players are making these incredibly difficult decisions."
Iran's sports ministry also earlier confirmed the news, first reported by the Islamic Revolutionary Guard Corps-linked Tasnim News Agency, in a statement.
"The national spirit and patriotism of the Iranian women's national football team defeated the enemy's plans against this team," the statement says, also accusing Australia's government of "playing in Trump's field".
Tasnim said the three were on their way to Kuala Lumpur in Malaysia to join the rest of the squad and were "returning to the warm embrace of their families and homeland after withdrawing their asylum application in Australia".
It said they had resisted "psychological warfare, extensive propaganda and seductive offers".
It means that, of the seven who initially said they wanted to stay in Australia, only three now remain as defectors. One of the players made the same decisi
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