"The Shahab-3 missile is entirely Iranian and has been designed by the domestic specialists," Defense Minister Ali Shamkhani was quoted as saying by state television.

Production "is continuing", the report added.

Iran has recently upgraded the Shahab-3 ballistic missile, believed to be based on a North Korean design, to have a range of at least 2,000 kilometres (about 1,200 miles) -- leaving arch-enemy Israel and US bases in the region well within range.

Tehran's steady progress on its ballistic missile programme is a major cause for concern among the international community, particularly Israel, which is already alarmed over Iran's nuclear activities.

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