President Mahmoud Ahmadinejad says Iran has test-fired a new advanced missile with a range of about 1,200 miles, far enough to strike Israel and southeastern Europe.

The solid-fuel Sajjil-2 surface-to-surface missile is a new version of the Sajjil missile, which Iran said it had successfully tested late in 2008 with a similar range.

The announcement comes just two days after President Barack Obama declared a readiness to seek deeper international sanctions against Iran if it shunned US attempts to open negotiations on its nuclear program.

He said he expected a positive response to his diplomatic outreach by the end of the year.