Western analysts have previously said the Islamic republic did not possess such technology.

The US and other Western nations suspect that Iran is attempting to build nuclear weapons.

Tehran strongly denies the accusation, saying its nuclear programme is for peaceful civilian purposes.

Mr Salehi told Fars news agency that Iran had completed construction of a facility in the city of Isfahan to produce the plates and rods.

"We have built an advanced manufacturing unit in the Isfahan site for the fuel plates," Mr Salehi, who is also acting foreign minister, told Fars news agency.

"A grand transformation has taken place in the production of plates and rods. With the completion of the unit in Isfahan, we are one of the few countries which can produce fuel rods and fuel plates."

Fuel rods are designed to contain enriched uranium and are housed inside the nuclear reactor.