Ahmadinejad hailed the Islamic republic's armed forces as the "guarantor" of regional security but refrained from the frequent tub-thumping boasts about the nation's military might in the face of enemy threats.

His more moderate comments came as the administration of US President Barack Obama calls for dialogue with Tehran over its controversial nuclear drive, which Western powers fear could be a cover for efforts to build an atomic bomb.

"Iran's armed forces are the guarantor of security in the region," Ahmadinejad said in an unusually short televised speech during the parade.

"Today the Iranian nation, with its religious armed forces, is ready to have a wide role in world management and to establish security based on justice across the world," he said.

"The world should know that Iran is a nation of ideals and supports peace and security based on justice for all nations."

Local media had said that 140 fighter jets and other aircraft would stage a display during the parade but the air show was cancelled due to what the media said was "bad weather and poor visibility."

However, Tehran was basking in warm and sunny weather on Saturday.

In past years, Iran -- which has long been at odds with the international community over its nuclear drive -- has used army day to show off its military might and warn its enemies of dire consequences should they attack.

In 2006 and 2007, for example, Ahmadinejad warned that Iran would "cut of the hand" of any attacker.

In previous years, Iran has prominently displayed the slogan "Death to Israel" on banners carried alongside a missile but this year it was carried on a less visible truck.

Hawks in the governments of both Israel and its staunch ally the United States have floated the idea of air strikes on Iran to prevent it from developing nuclear weapons.

But in contrast with former US president George W. Bush, Obama's new administration has made several overtures to Tehran, despite continued concern about its uranium enrichment activities.

The process is at the heart of Western fears over Iran's nuclear programme as it can be used to make the fissile core of an atomic bomb as well as make nuclear fuel for power plants.

Last week, six world powers led by the United States decided to invite Iran for direct talks over the nuclear standoff, which has seen Iran slapped with three sets of UN Security Council sanctions for its refusal to halt enrichment.

Ahmadinejad responded by saying Tehran would offer a new package to world powers for negotiations.

Israel however has kept up a more belligerent tone, warning that all options were possible to stop Iran building nuclear weapons.

Widely believed to be the Middle East's sole nuclear armed power, Israel considers Iran its arch-enemy because of repeated calls by Ahmadinejad for the Jewish state to be wiped off the map.

New Israeli Prime Minister Benjamin Netanyahu has warned that the threat posed by Iran constituted the biggest threat to Israel's existence since its creation 61 years ago.

Last week US Vice President Joe Biden said Netanyahu's cabinet would be "ill-advised" to attack Iran, but stressed it was unlikely to do so.

And Tehran last week called on the UN Security Council to condemn Israel for its "insolent threats" against Iran's nuclear facilities.

Army Day marks the issue of a decree in 1979 by Iran's revolutionary leader Ayatollah Ruhollah Khomeini to keep the army in the face of massive criticism over its support for the regime of the ousted shah.

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