Initial talks on the joint project took place during Cinema Organization of Iran director Mohammad Khazaei's meeting with the Iraqi Minister of Culture, Tourism and Antiquities, Hassan Nazim, in Baghdad.
Nazim expressed his hope that the project would begin during an Iranian film week, which was being held in Baghdad from July 23 to 25.
He said that the film will depict a significant portion of the counties' struggle against ISIS terrorists based on historical facts.
He added that signing a memorandum of understanding between the two countries can help Iranian and Iraqi filmmakers exchange their experiences.
''The two nation have a lot in common that can help increase their friendly relationship,'' Nazim noted.
Shohreh Pirani, the widow of the Iranian nuclear scientist Dariush Rezainejad, and Hossein Darabi, the director of the Iranian drama ''Henas'' about the life story of the couple, also accompanied Khazaei and his colleagues on the visit to Baghdad.
Nazim said martyrs should be commemorated by films, and praised the Iranian director and his crew for making ''Henas'', which was screened during the Iranian film week.
On his part, Khazaei said that Iran welcomes any plan for joint film projects on ISIS, the Arbaeen gathering and Muharram rituals in Iraq, and added, ''Iranian cinema made breakthroughs after the victory of the Islamic Revolution and a booming film market can be set up in collaboration with Iraq.''
The Iranian fillm week, which wrapped up on Monday, also featured ''When the Moon was Full''.
Directed by Narges Abyar, the acclaimed drama tells the story of a woman from Tehran who marries a man from an Iranian province near the border of Pakistan, Soon afterwards, she discovers that her new brother-in-law is a religious extremist trying to recruit her husband for his bloody cause.
Eight short movies, including ''The Feast of the Goat'' by Saeid Zamanian, ''The Savior'' by Soheila Purmohammadi and ''White Clad'' by Reza Fahimi, were screened at the event.
''The Savior'' tells the story of a little girl who lives with her father in a village, After witnessing the death of her mother, she tries to save the fish instead.
''White Clad'' follows a grandmother who gives Ahmad, a ten-year-old boy, a cake of cheese to give to his father, who is a teacher, The grandmother hopes that Ahmad's father will intervene and stop them from hanging her son.