Few days before 2011, he became Iran U23 head coach to help the team toward the Olympic qualification to London. He conducted and qualified the team for next round in a play-off against Kyrgyzstan. Afazeli announced his resignation immediately after the second leg in Bishkek during the post-match press conference due to what he called "lack of support from Iranian Olympic Committee and Football Federation of Iran". He was appointed as Steel Azin's head coach on 27 June 2011. while Steel Azin was second on the table on the way for promotion to top flight, FIFA voted to reduce 12 points out of the club due to their case with former coach Theodor Jung and his assistant. On 17 February 2012, Steel Azin and Afazeli decided to part company due to their different views as it has been mentioned.