Israel denied on Sunday a recent report that said the Jewish state was preparing for a possible attack on Iranian nuclear facilities at the end of March.

Israeli Defense Ministry diplomatic policy chief Amos Gilad told Israel Radio that the report, carried by British newspaper Sunday Times, "appears more imaginary than real."

The newspaper said it received confirmation from Israeli military officials that both ground and air forces would be employed to impede Iran's nuclear development.

The paper also said the alert level among Israeli special forces units was raised after Israeli Prime Minister Ariel Sharon gave preparation orders to the Israel Defense Forces last week for a possible attack on Iranian nuclear targets at March end.

But Gilad refrained from excluding any future Israeli attack on Iran, saying "it's impossible to say, in advance, that all options will be ruled out."

Defense Minister Shaul Mofaz spoke harshly on Friday against Iranian President Mahmoud Ahmadinejad who said Israel should be moved to European soil.

Mofaz said Israel must prepare solutions "other than diplomatic " in the face of "Tehran's persistent advancement of its nuclear program."

Tensions between Israel and Iran have escalated in the past week following Ahmadinejad's demands that Israel to be moved to Europe and right-wing lawmaker Benjamin Netanyahu's calls for Israeli actions against Iran.

Iran responded last week to Netanyahu's calls, reiterating an earlier warning that Israel would pay a heavy price for any attack attempt.

Iran insists that its nuclear program is peaceful, denying the US charges that the Islamic Republic is secretly developing nuclear weapons.

Source: Xinhua