"The Shahab-3 missile has a range of 2,000 kilometres," Nasser Maleki, deputy director of Iran's aerospace industry organisation, was quoted as saying.

"Very certainly we are going to improve our Shahab-3 missile and all of our other missiles."

When asked if Iran intended to produce longer-range ballistic missiles -- such as a Shahab-4 -- a device that would involve a two-stage propulsion system and possibly bring European capitals within range -- the official replied only that "we are at the level of the Shahab-3".

Steady progress made by Iran on its ballistic missile programme is a major cause for concern for the international community, already alarmed over the country's nuclear activities.

On August 11, Iran tested an upgraded version of its Shahab-3 missile, which is believed to be based on a North Korean design.

Previous figures had put the missile's range at between 1,300 and 1,700 kilometres, already bringing arch enemy Israel and US bases in the region well within range.

While the country has announced it has upgraded the Shahab-3, it has denied it is working on a Shahab-4.

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