The "extremely accurate" missile would be among the most effective weapons in the Iranian armed forces, it said.

The defence ministry refused to give any details of the missile to AFP, notably its range.

Last year Iran successfully launched the Shahab-3 missile with a range of 1,300 kilometres (800 miles), bringing arch-foe Israel in reach.

Islamic Iran is developing a comprehensive domestic defence industry which has turned out a new transport plane, a combat helicopter, a submarine and a guided-missile warship.

It has also decided to resume military purchases from Russia, to the annoyance of the United States, which deems Iran a supporter of terrorism.