"Today, we have the power to send our missiles up to 2,000 kilometres, and experts know that once a country has made such a step, all further steps are accessible," Rafsanjani said at a conference on "Space and National Security".

Steady progress made by Iran's ballistic missile programme is a source of concern to the international community, adding to worries about the country's nuclear activities, which Tehran insists are peaceful.

On August 11, Iran tested an upgraded version of its Shahab-3 missile. Previous figures had put the missile's range at between 1,300 and 1,700 kilometres, already bringing arch-enemy Israel well within range.

Following the latest test, Israeli news reports put the range of the new Shahab-3 -- believed to be based on a North Korean design -- at 2,000 kilometres.

"We have today the ballistic technology and if we had not limited our progress, we would have been even more advanced," Rafsanjani said.

"With this ballistic power, we can today speak of an independent satellite launch and we should seek the technology to make our own satellites," he added, saying Iran "was at the door of the club of country's having satellite technology."

Iran has previously announced it hopes to launch its first satellite, for telecommunications, in 2005.

During a military parade last month, Iran showed off its range of ballistic missiles draped in banners vowing to "crush America" and "wipe Israel off the map".

"The Shahab-3 missiles, with different ranges, enables us to destroy the most distant targets," said an official commentary accompanying the parade.

While the country has announced it has upgraded the Shahab-3, it has denied it is working on a Shahab-4 -- a device that would involve a two-stage propulsion system and bring European capitals within range.

But last week the government said it was being deliberately ambiguous over its missile capability, currently a topic of intense speculation following fresh tests and the introduction of a "strategic" device.

That comment came after Defence Minister Ali Shamkhani told state-run television that the Iranian army has taken delivery of a new "strategic missile" and that the weapon, unnamed for security reasons, had been successfully tested.

Iran says the Shahab-3 is simply a deterrent, while Israel charges that the Islamic state could have a nuclear warhead by 2007. Israeli alarm has led to speculation that Israel -- currently believed to be the only nuclear-armed state in the Middle East -- may launch a pre-emptive strike against Iran's nuclear facilities.

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