"There is no doubt that the moment they continue enriching uranium even after they have nuclear fuel from the Russians, that it is not meant for peaceful energy or nuclear industry," Minister for Strategic Affairs Avigdor Lieberman told parliament.

"There is no explanation for the uranium enrichment other than a will to obtain a nuclear weapon," said the ultra-nationalist minister who is in charge of coordinating Israel's efforts to counter Iran's nuclear drive.

Russia announced earlier on Monday that it has delivered the first consignment of nuclear fuel for Iran's first atomic power plant, which is being built by a Russian contractor in the southern city of Bushehr.

But the head of Iran's atomic energy organisation Gholam Reza Aghazadeh said shortly afterwards that Tehran still wanted to enrich uranium on its own soil for a second plant that it is building.

Widely considered the Middle East's sole if undeclared nuclear power, Israel regards Iran as its main foe after repeated calls by President Mahmoud Ahmadinejad for the Jewish state to be wiped off the map.

Along with its main ally Washington, Israel accuses Tehran of using its controversial nuclear programme as a cover for developing atomic weapons, a charge Iran vehemently denies.