"The country's scientists are working on a three-stage rocket that will take us to 1,000 kilometres," Ahmadinejad, quoted by Fars, told a local television in the western city of Hamedan.

He said the rocket's engines would have a thrust of between 120 and 140 tonnes, four times greater than the rocket thrust used to launch Iran's first satellite into space in February 2009.

"Last time, we sent a satellite to 250 kilometres ... Next year it will be sent to 700 kilometres, and the year after that to 1,000 kilometres," he said.

The launch of Iran's first satellite, named Omid, stirred a wave of criticism from Western countries which fear the potential uses of the Islamic republic's ambitious space programme.