The New York Times quoted on Monday a Middle Eastern intelligence official familiar with the matter as saying that Israel was responsible for a fire that occurred at Iran's Natanz nuclear facility on Thursday, DPA reported.

The newspaper also quoted a Revolutionary Guards official saying that the incident took place using explosive materials.

The intelligence official said that Israel had planted a bomb in a building where modern centrifuges are being developed.

The Iranian authorities acknowledged yesterday that the fire that occurred caused "severe damage," and would set the country's nuclear programme "months back."

In response to a question about Israeli involvement in the incident, Israeli Defence Minister Benny Gantz said: "Anyone can suspect us of everything and all the time, but I do not think this is true ... Israel does not necessarily stand behind every incident that occurs in Iran.”

The underground Natanz facility is located 220 kilometres southeast of Tehran and is the most important uranium enrichment site in Iran.