PSA Group unveiled a second Iranian manufacturing deal on Thursday as the French carmaker seeks to reclaim the leading position it once enjoyed in the Middle East's biggest auto market, until U.S.-led sanctions forced its withdrawal.

The Paris-based carmaker struck a framework deal with Iranian counterpart SAIPA to invest 300 million euros ($330 million) in the development and production of three Citroen models through a new joint venture.

PSA, which pulled out in 2011 under U.S. pressure, now faces stiffer competition from Chinese rivals that have grabbed more business in the intervening years - as well as western peers such as Renault flocking back with newer models...

Iranian car registrations approached 1.6 million cars at their 2011 peak, with PSA claiming almost 30 percent of the market, before collapsing under the weight of sanctions.

The deal with SAIPA, Citroen's partner since 1966, follows a joint venture deal inked last month between stablemate Peugeot and state-owned Iran Khodro. PSA's smaller DS premium badge has also clinched a distribution agreement in the country.