In keeping with the wishes of Kazemi's mother, the official announced the burial will take place in the city of her birth.
"Her body was taken to Shiraz this evening and the funeral will be held at around 8:00 am on Wednesday morning."
Kazemi's mother, Ezzat, gave her permission for the burial to take place in Iran rather than Canada.
The decision is bound to cause controversy as Canadian officials demanded the return of her body, and the photojournalist's son also wanted his mother's body returned, the student news agency ISNA reported.
"For her soul to rest in peace and at the request of her family and friends as well as journalists and photographers ... I give my agreement for the funeral to take place at her birthplace," wrote Kazemi's mother.
Died in custody
Kazemi, 54, died in hospital after a brain haemorrhage following a heavy blow to the head while she was in custody, an official post mortem examination report showed.
She was arrested on 23 June outside Tehran's Evin prison where she was taking photographs of protestors demanding the release of relatives locked up during last month's anti-government protests.
The journalist was admitted three days later to Revolutionary Guard hospital Baghiatollah Azam where she died.
Head of Iran’s judicary, Ayatollah Mahmoud Hashemi Shahroudi, referred the inquiry into Kazemi's death to Tehran prosecutor Saeed Mortazavi.
Canadian Foreign Affairs Minister William Graham has demanded that the Iranian government act quickly to bring to justice those responsible for her death.