"Iranian experts were able to build a satellite guiding system in space called a plasma thruster. This system is able to enhance the satellite's maneuvering and its carrying capabilities," it said.

"The system can also guide the satellite in orbit after launch."

Plasma-thrusting is one method that can be used to propell a spacecraft while in orbit.

The report did not elaborate further and did not say whether the system will be used to guide an Iranian Russian-made satellite put into orbit by a Russian rocket in October 2005.

That satellite, called Sina-1, was Iran's first and so far only probe to be launched into space and was described by the Iranian press at the time as being for research and telecommunications purposes.

Iran has said it is planning the construction and launch of several more satellites over the next three years.

Tehran has also been making continued progress in ballistics, a source of concern in the West along with the country's nuclear programme.

This is a wire news report provided for informational purposes only.

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