The two sides stressed joint cooperation especially after the Iran nuclear deal, particularly in security and economic areas.
Steinmeier is in Tehran for the first time in 12 years.
Zarif said he was hopeful that the the Munich Security Conference would provide a suitable ground for tackling joint problems.
Speaking on the recent political stand-off between Tehran and Riyadh, the top Iranian diplomat said Tehran is not looking to eliminate Saudi Arabia.
He also required the Saudi government to clarify the fate of missing Iranians of the recent Hajj stampede.
"In the Middle East it is either security for everyone or no one," Iranian FM said. "We believe that either in Yemen, Syria, Bahrain, or any other country only political approaches can work and the people`s vote should be put to practice."
Iran expects its neighbors to realize the truth about the region, Zarif stressed, reiterating that military approaches to the current regional crises are doomed to failure.
Regarding the economic relations between Iran and Germany, Zarif said the private sectors on both sides can act as the propelling engine to improve mutual ties.
He said Iran and Germany`s relations span a broad range of activities from fighting terrorism, extremism, and drugs to human rights and disarmament.
Steinmeier for his part dismissed the news as being fake, that some German officials had not accepted the Joint Comprehensive Plan of Action (JCPOA).
He also noted that the JCPOA is expected to build trust between Iran and the Western powers in order to help raise existing problems.
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