Two weekly publications, Irandokht and Sina, will also close.
Behrooz Behzadi, Etemaad's editor-in-chief, said the paper was closed without any specific reason being assigned to the move.
The crackdown on press has accelerated in Iran since Mahmood Ahmadinejad became the country's president in 2005. The Iranian government has in the last few years stepped up pressure on journalists and newspapers.
Following disputed elections last June, Iran has closed down 8 newspapers and imprisoned over 100 journalists and bloggers. Sixty-five of these still remain jailed.
The New York-based Committee to Protect Journalists (CPJ) has launched a campaign to force the government to release the imprisoned media persons.