ISIS experts David Albright and Jaqueline Shire's report on the ISIS website supported Iran's own claim and contradicted French Foreign Minister Bernard Kouchner, who said Tehran has no such capacity.

The Islamic republic said it needs the fuel for a research reactor in Tehran that makes radioisotopes for medical purposes such as cancer treatment.

"Though Iran may encounter some challenges, it is technically equipped to produce 19.75 percent enriched uranium at the Natanz Fuel Enrichment Plant," Albright and Shire wrote.

They noted that anything under 20 percent is considered Light Enriched Uranium (LEU), while anything over is High Enriched Uranium (HEU).

As of November last year, the experts said, Iran had accumulated over 1,800 kilograms (3,960 pounds) of LEU enriched to around 3.5 percent, but it is suspected that Iran has now acquired 2,000 kilograms of LEU.

Iran needs only "about 200 kilograms of 3.5 percent enriched uranium to make 20 kilograms of 19.75 percent enriched uranium, more than enough to fuel the TRR (Tehran Research Reactor) each year," the experts said.

If Iran were to set aside 1,200 kilograms of LEU -- the amount it was supposed to send overseas for further enrichment under an international deal -- it could produce about 120 kilograms of 19.75 LEU.

"If Iran were to use its entire stockpile of accumulated LEU in the effort, it would be going most of the remaining way toward the production of weapon-grade HEU," the experts said.

Albright and Shire said Iran would need some time to master the process of building the fuel rods for the reactor and would probably use knowledge gained from abroad to do so.

However, it would have to be careful to avoid "jeopardizing the reactor's safety," they wrote.

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