"These threats have always existed," he said in an interview on state satellite television.

"I do not think the United States has the capacity to attack Iran," he said. "They will not commit such a strategic error because they know the price will be very high."

The official said such an attack would also create a lot of problems for both Washington and its ally Israel.

Washington has alleged that Iran is seeking to build nuclear weapons, a charge that Tehran vehemently denies, saying that its nuclear programme is completely peaceful.

On negotiations with France, Britain and Germany who are trying to persuade Iran to abandon a uranium enrichment programme, the Iranian negotiator said his country was "prepared for all eventualities, either the failure or the success of the negotiations."

Rowhani, who is also secretary of the country's Supreme National Security Council, said Iran wanted the nuclear issue wrapped up in time for the June session of the UN nuclear watchdog, the Vienna-based International Atomic Energy Agency

He said Iran could continue its current suspension of uranium enrichment until June even in the absence of any progress in the negotiations with the European Union countries.

Tehran agreed in November to a freeze on nuclear fuel work to prove its atomic intentions were peaceful.

"We want our case to be put on the agenda at the June meeting," he said. "If the agency acts properly, the matter will be closed for good."

He said Iran did not fear its case being put before the UN Security Council, as the US wishes, although it would prefer that this did not happen.

France, Britain and Germany are representing the European Union in ongoing negotiations aimed at convincing Tehran to definitively abandon its uranium enrichment programme, which can be a key step to developing nuclear weapons.

The IAEA said Tuesday in Vienna that Iran had refused to cooperate in key areas with UN experts investigating possible atomic weapons work, including blocking a follow-up visit to the Parchin military facility, where Washington charges Tehran is simulating testing of atomic weapons.

The United States charges that Iran has a clandestine nuclear weapons program and wants the IAEA to bring Tehran before the UN Security Council for possible sanctions.

In London Tuesday, United States Secretary of State Condoleezza Rice took a conciliatory line on Iran, stressing the role of diplomacy and the three European states.

But she continued to refuse to rule out possible military action.

Asked on television whether she thought military action was possible, she said the US "never categorically rules out anything but we are in a state in which diplomacy has time to work, in which we have many other diplomatic arrows in our quiver."

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