Iran's nuclear chief says his country is planning to build at least two new nuclear power plants next to an existing facility that became operational with Russia's help last year.

Fereidoun Abbasi was quoted by state TV as saying Sunday that Iran is in the very early stages of planning the new 1,000-megawatt nuclear power plants and that it may begin construction within a year or two.

Iran has repeatedly said in recent years that it is planning to build more nuclear power plants but nothing has been offered to show that any work is under way.

Iran's first power plant went into operation last May at the southern coastal city of Bushehr.

The West suspect Iran is pursuing a nuclear weapon program, a charge Iran denies.

Abbasi also told the ISNA news agency his country would continue the higher enrichment level for a medical research reactor that produces isotopes for treatment of about 1 million cancer patients in Iran.

"There is no reason for us to back down on 20 per cent-level enrichment, because we produce only as much 20 per cent material as we need," Abbasi said. "Not more, not less."

The West is concerned that the 20 per cent enrichment could quickly be turned into nuclear weapons-grade material. Iran insists its nuclear development program is for peaceful purposes.

Abbasi's statement about enrichment echoed Iran's objections last week at a meeting with world powers in Baghdad to a proposal to suspend 20 per cent enrichment in exchange for a U.S.-supported package that would include supplying Iran with radioactive material and civilian plane spare parts.

Iran seeks to have Western oil embargo and banking sanctions eased before considering suspension of 20 per cent enrichment.