Videos shared on Twitter said to be taken from the scene shows smoke rising into the sky with the sound of sirens heard in the background.
An official told TV that "the terrorist who carried out the attack was killed".
The bomber drove his vehicle, loaded with explosives, up to the police headquarters, provincial official Rahmdel Bameri told state TV.
While rare, Iran has been targeted in recent years by militant attacks.
Ansar al-Furqan, a Sunni jihadi group, clamed credit for the attack.
Iranian authorities said Rigi who headed the militant group Jundollah was captured on a flight from Dubai to Kyrgyzstan.
Sistan-Baluchistan province, where the bombing hit, has always been a flashpoint, with Pakistan-based Baluchi separatists and jihadists carrying out cross-border attacks.
In June previous year, IS militants attacked parliament and the shrine of Ayatollah Ruhollah Khomeini, the leader of the 1979 Islamic Revolution, killing at least 18 people and wounding more than 50. Iran's supreme leader, Ayatollah Ali Khamenei, blamed Saudi Arabia and the United Arab Emirates for the attack, allegations denied by both countries.
In December 2010, at least 41 people were killed and 90 others were wounded following a suicide attack near a mosque in the city.
Iran says armed groups have safe havens in Pakistan and has warned it will hit their bases there if Islamabad does not confront them.
"In 2010, our security services intercepted & captures extremists en route from UAE. Mark my words: Iran WILL bring terrorists & their masters to justice".
Chabahar Port, which is being developed with funding from India, has been described as India's "golden gateway" that will help boost trade links to land-locked Afghanistan and central Asia, while bypassing its regional rival, Pakistan.
The Indian foreign ministry strongly condemned the "despicable terrorist attack".
Such acts of violence will also "boost the Islamic Republic of Iran's resolve to fight terrorism", said Jahangiri, calling for all-out efforts to identify the perpetrators and bring them to justice.