The bill includes changes to the current, relatively liberal press law in several key areas, such as referring some press offences to the revolutionary courts, where there is no jury and no access to lawyers.
At present all press offences are heard in ordinary courts with the presence of a special jury.
But conservatives have attacked the jury as being too lenient. The new bill would give them a bigger say in the jury selection process.
Press freedom
The bill also stipulates that conservative-controlled bodies should have a much stronger presence in a committee which can decide to close down offending papers.
The proposals have been widely attacked in the Iranian media and are being been opposed by the reformist government of President Mohammed Khatami.
The Iranian press has enjoyed greater freedom since Mr Khatami took office about two years ago, but conservatives in the Iranian leadership have accused the liberal press of undermining Islamic values.
Two months ago the liberal newspaper Zan, meaning woman, was banned after carrying a message from the widow of the former Shah.
The paper's owner, a daughter of ex-President Hashemi Rafsanjani, is expected to be put on trial for publishing the message.
Power struggle
Correspondents say the ban was the result of an increasingly bitter power struggle between the moderate president and conservative factions that has led to the closure of a number of newspapers and the arrest of several editors.
The BBC's Iranian Affairs correspondent, Sadeq Saba, says many journalists believe the bill, if approved, will give more power to conservative-controlled bodies to close down independent newspapers.
Some conservative journalists have also expressed concern about changing the existing legislation. But despite this widespread opposition, the new bill is due to be debated in parliament shortly.
Country profiles
Iran's conservatives go on the offensive
(02 Jun 99 | Middle East)
Senior Iranian media figure bailed
(29 May 99 | Middle East)
Iranian newspaper banned
(07 Apr 99 | Middle East)
Media caught up in political struggle
(12 Feb 99 | Monitoring)
President Khatami
Irna - official news agency
Salam Iran
The BBC is not responsible for the content of external internet sites.
Safety chief deplores crash speculation
Iraq oil-for-food aid extended
Israel demands soccer sex scandal inquiry
Israeli PM's plane in accident
Jordan police stop trades unionists prayers
New Israeli raid in southern Lebanon
New demand over PLO terror list
Earthquake hits Iran
New UN decision on Iraq approved
Algerian president pledges reform