Iran does not recognise the state of Israel and forbids its athletes from competing against Israelis at international sporting events.
A United World Wrestling statement said: "Karimi, on instruction of his coach Jamshidi, wilfully lost his quarter-finals match against Alikhan Zhabrailov.
"Both wrestler and coach were found to have acted in direct violation of the International Wrestling Rules and the UWW Disciplinary Regulations."
Karimi allowed himself to be felled by Zhabrailov and repeatedly conceded two points while rolling over with his legs held.
Wrestling is hugely popular in Iran and at the time, the country's government paid tribute to Karimi, branding him "a source of pride and praise".
Karimi's ban ends on May 23, although the ban only applies to international matches, leaving him free to wrestle domestically.
