Iranian Defense Minister Ali Shamkhani announced on Wednesday that Iran has successfully test-fired the latest prototype of Shahab-3 missile, the official IRNA news agency reported.

"Iran has upgraded the former version of Shahab-3 guided missiles and successfully test-fired it in a military defense shield exercise," Shamkhani was quoted as saying.

"The missile has proved stronger in terms of destruction and precision at guided targets," the minister added.

Earlier in the day, Shamkhani told reporters after a cabinet meeting that Iran carried out a test-firing of the new Shahab-3 missile with more accuracy in the presence of observers.

He said Iran was exposed to what he termed as "multilateral threats" and should boost its preparedness for defense.

However, the minister also said that Iran was willing to pursue detente and cooperation for the sake of regional and international peace and security and Iran was to stand firmly against any threat and defend peace in the region.

"Iran is resolved to build up cooperation for international peace, but this resolution should not be misinterpreted by certain states to incite security crisis against Iran," he said.

Iran, facing the threat of attack from the United States and Israel, has been endeavoring to upgrade its missiles to the "deterrent" level.

On Aug. 11, Tehran announced a successful test-firing of an upgraded version of the Shahab-3 missile, which, military experts estimated, had a range of 1,300 km and was capable of striking Israel or any other target in the region.

Shamkhani said late August that Iran had achieved an "effective deterrent power" to confront its enemies in the region.

In September, Shamkhani said that a new "strategic" missile has been successfully test-fired and delivered to the Iranian armed forces.

The United States and Israel, accusing Iran of secretly developing atomic weapons, have threatened to launch preemptive attacks on Iran's nuclear facilities.