White House spokesman Robert Gibbs's statement on Thursday that Obama retained "all options" while dealing with Tehran and its controversial nuclear programme reminded him of Bush, Rafsanjani said in a Friday prayers sermon.

"Repeating Mr (George W.) Bush's words does not resolve the (nuclear) problem," he said in an address broadcast on state radio.

"Saying that all options are on the table, even the military one, and that if Iran wants to end its isolation it must suspend its nuclear programme will not work," the powerful cleric said.

On Thursday, Gibbs said Obama preferred diplomacy with the Islamic republic but preserved "all his options".

Asked if the military option was still on the table, Gibbs said: "The president hasn't changed his viewpoint that he should preserve all his options."

In tackling Tehran's nuclear ambitions, alleged support for terrorism and threats against Israel, Obama believes "we must use all elements of our national power to protect our interests as it relates to Iran," he said.

Rafsanjani said the White House must take a "just" stand on the issue.

"We are still expecting the new US administration to take a just and reasonable step that does not violate Iran's rights and also helps ease the concerns of the world too," Rafsanjani said.

"Non-transparent and impractical promises will not work."

On Monday, Obama offered a diplomatic hand to Tehran if it was ready to "unclenched its fist."

In an interview with Al-Arabiya television, Obama promised to lay down a framework for his policy towards Iran, whose leaders have long regarded the United States as the "Great Satan".

"As I said in my inauguration speech, if countries like Iran are willing to unclench their fist, they will find an extended hand from us," Obama said.

"It is very important for us to make sure that we are using all the tools of US power, including diplomacy, in our relationship with Iran."

But Iran's hardline President Mahmoud Ahmadinejad reacted by launching a fresh tirade against the United States and said he expected "deep and fundamental" change from Obama.

"Meet people, talk to them with respect and put an end to the expansionist policies. If you talk about change it must put an end to the US military presence in the world," Ahmadinejad said.

The UN Security Council permanent members -- Britain, China, France, Russia and the United States -- plus Germany have offered Tehran a set of economic and energy incentives in exchange for halting its uranium enrichment programme which the West sees as a cover to acquire a nuclear weapons capability.

But Tehran is pressing on with its sensitive nuclear fuel work, insisting that its nuclear programme is peaceful and solely geared toward electricity generation.

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