Derakhshan played as a midfielder for a number of clubs, most notably Persepolis, as well as the Iran national team.

He later managed other Iranian clubs like Rah Ahan, Paykan, Shahrdari Tabriz, Shahin Bushehr and Damash Gilan.

Derakhshan was a member of the Iran national under-20 football team at 1977 FIFA World Youth Championship.

He resigned again after a series of the problem in the club that led team in the relegation zone and losing 2012 Hazfi Cup Final.

On 21 September 2012, he was signed as new head coach of Damash Gilan but was sacked on 3 March 2013 after a series of poor results.