The exiled former crown prince of Iran has accepted a Coalition invitation to visit Australia, telling the ABC he is a "bridge" to democratic elections, not a candidate for leader.
Iran expert Kylie Moore-Gilbert says the Coalition strayed into "choppy territory" by appearing to treat him as Iran's opposition leader.
Ted O'Brien says he expects the government to engage with Mr Pahlavi in good faith.
Following the meeting, Mr Pahlavi told Radio National Breakfast he did not have personal ambition to lead Iran in the long term.
No date has been set for his visit to Australia. Asked when it would happen, Mr Pahlavi said he hoped it would happen soon.
Mr Pahlavi labelled Iran's rulers a "corrupt, mafia-like dictatorship" that he said was now controlled by the Islamic Revolutionary Guard Corps (IRGC).
The former crown prince has not lived in Iran for 48 years, having left in 1978 for pilot training in the United States shortly before the Islamic Revolution that ended the rule of his father, Shah Mohammad Reza Pahlavi.
Mr Pahlavi has before said his legitimacy comes from his fellow Iranians.
In an earlier statement, Mr O'Brien said the invitation to visit Australia was extended following "significant calls" from Australia's Iranian community.
Responding to Dr Moore-Gilbert's "cult of personality" characterisation, Mr Pahlavi said there were "some extremists here and there" among his supporters, which he said was nothing new.
Mr O'Brien denied the meeting with Mr Pahlavi amounted to an endorsement and said the Coalition had engaged with other Iranian opposition groups.