The Iranian Fars News Agency reports that the contest is being hosted by irancartoon.ir and Shoyadaye Haftom Tir Sarcheshmeh, a company active in Islamic cultural affairs.
The company has announced that the contest is being arranged in response to a cartoon of prophet Muhammad in the French satirical magazine Charlie Hebdo.
The contest was first held in 2005 by Hamshahri daily and Iran Cartoon and has found much favor worldwide.
"If there is no limit to the freedom of speech, Holocaust would also have to be freely criticized,” reads an announcement by the company.
A press conference is going to be held by officials overseeing the contest next Saturday.