Iran, accused by the US of trying to build an atomic bomb, dismissed new allegations on Thursday that it was carrying out sensitive, undeclared nuclear activities at a military base.
Diplomats at the UN nuclear watchdog in Vienna and a US official based in Washington said UN inspectors found components that could be used in advanced centrifuges for extracting enriched uranium.
Enriched uranium can be used as nuclear fuel or to make an atomic bomb.
"Iran's nuclear activities are entirely peaceful and Iran has not had and nor does it have military nuclear activities," Foreign Ministry spokesman Hamid Reza Asefi said in a statement that was faxed to reporters.
At issue is whether Iran made omissions in what it says was a full declaration of its nuclear technology to the International Atomic Energy Agency in Vienna in October.
"This stuff should have been declared," one Western diplomat said.
A senior US official said it was "true" that the components were found at an Iranian military installation.
"Which is why it may be part of the clandestine military program," he said, speaking on condition of anonymity. He declined to provide further details.
The US daily USA Today identified the military base as Doshan Tapeh.
Diplomats and the US official said the parts were compatible with the "P2" uranium-enrichment centrifuge, a Pakistani version of the advanced Western "G2" design.
Asefi said, "In none of Iran's military centers is a nuclear program being pursued and P2 centrifuges do not exist in such centers."
There was no comment from the IAEA.
The exchanges were the latest in a long series of allegations and denials surrounding Iran's nuclear program, which it insists is purely for generating electricity.
US Undersecretary of State John Bolton said only last week that there was no doubt that Tehran was pursuing nuclear weapons and accused it of systematic deception.
"These reports of further disclosures by Iran of possessing more advanced centrifuge designs underscore the serious concerns we have," White House spokesman Scott McClellan said in Washington.
US officials have indicated they are in no rush to refer the matter to the UN Security Council, which has the authority to impose sanctions.
But some officials said this decision could be affected by the IAEA secretary general's report on Iran that is expected to be released shortly.
The EU trio of Britain, France and Germany persuaded Iran in November to suspend uranium enrichment and accept more intrusive international inspections.
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