Rapid urbanization and inefficient housing policies in Iran have led to the expansion of informal settlements and the emergence of numerous social, spatial, and institutional challenges. As the country's second-largest metropolis, Mashhad, characterized by high migration concentration and inadequate spatial planning, hosts over 30% of its population in informal settlements. This study aims to design and prioritize a localized model of urban governance strategies for the sustainable organization of these settlements.

The research adopts an applied-descriptive methodology, employing an integrated analytical framework comprising urban governance indicators (participation, transparency, accountability, institutional coherence, and spatial justice), SWOT analysis, and the Analytic Network Process (ANP). Data were collected through questionnaires (384 residents) and semi-structured interviews with 25 urban managers and experts. Questionnaire reliability was confirmed with a Cronbach’s alpha of 0.812, and data were analyzed using Super Decisions software.

Findings reveal that governance indicators in Mashhad’s informal settlements are in an unfavorable state, with transparency (mean: 1.66) and accountability (mean: 1.72) being the most critical. ANP results indicate that "establishing a local accountability system" (weight: 0.280) and "forming local councils" (weight: 0.250) are the most crucial strategies for enhancing urban governance. Additionally, "information transparency" (0.190), "development of infrastructural services" (0.150), and "institutional integration" (0.130) were identified as subsequent priorities.

The study concludes by emphasizing the necessity of transitioning from purely physical approaches to participatory governance, highlighting that software and institutional strategies take precedence over physical interventions. The primary innovation of this research lies in its application of a tripartite analytical framework (governance indicators + SWOT + ANP) for the quantitative prioritization of organizational strategies, which can be generalized to other Iranian cities and developing countries. These findings can inform policymaking for municipalities, the Ministry of Roads and Urban Development, and local institutions in sustainably managing informal settlements.