The cause of his death was not revealed.
Davoodi, an Iowa State University graduate, served under former president Mahmoud Ahmadinejad from 2005 to 2009.
Davoudi was also a member of the Expediency Council and a tenured professor of the Tehran-based Shahid Beheshti University.
Despite being affiliated with the principlist government of Ahmadinejad, he was an advocate of free markets in economy.