Among the teams sending participants will be Ajax, AS Roma, Chelsea, FC Copenhagen, Liverpool, Porto and Real Madrid,
The workers are some of the thousands slaving away on the FIFA World Cup infrastructure projects.
The Asian Football Confederation sent a letter to the Iranian Football Federation on Friday announcing the ban, but the IFF has yet to specify their reasons for receiving it.
"Everyone is welcome," he told ESPN. "We do not mix sport and politics, but we would hope that Palestinians are able to make it, too."
It is not, however, a phrase that appeals greatly to Hassan Al Thawadi, the man who heads Qatar’s organising body for the 2022 World Cup, which will be held in the Gulf state.
"The International Judo Federation showed its clear moral fiber by suspending the Iran Judo Federation," says Palestinian Media Watch, demanding the international football body to do the same.
Winfried Schäfer also said that Iranians are scared, in a way that is hard to understand for someone who does not live in the country.
UEFA has opened disciplinary proceedings against Bulgaria for racist behaviour, including Nazi salutes and chants, and against England for not providing enough traveling stewards.
Iranian authorities had assured world governing body FIFA that women would be allowed to attend the game and have set aside sections of the stadium for women.
The two teams drew 1:1 in their last game in Gaza on June 30 - the club who won the playoff was lined up to represent Palestine in the Asian Champions League.