Persepolis defender Mohammed Nosrati was caught on video squeezing teammate Sheis Rezaei's backside during a 3-2 win over Damash Gilan.
The game was broadcast live to millions. Nosrati and Rezaei have said they did not intend to offend anyone.
But the Iranian football federation has given indefinite suspensions to both players for "immoral acts", state TV says.
The pair have also been suspended by Persepolis and fined nearly £25,000 each.
The incident caused outrage in the Islamic republic where homosexuality is illegal.
Jalal Yahyazadeh, a cleric and member of parliament, called it a "shameless act" and added that it had "upset, angered and outraged" all sports fans.
"What happened is absolutely not acceptable because it was a very ugly thing," he said.
Post published in: World News