Tehran: Iran on Sunday rejected a report that it has signed deal that would see Tehran providing billions of dollars worth of weapons to Syria so long as Damascus refuses to engage in peace talks with Israel.

“Such reports are media propaganda for targeting the excellent ties between Iran and Syria," said Foreign Ministry spokesman Mohammad Ali Hosseini.

The London-based Arabic newspaper Asharq Al Awsat reported on Saturday that Iranian President Mahmoud Ahmadinejad sealed the deal in a recent visit to Damascus.

The newspaper also reported that Iran has promised to help Syria establish a nuclear missile plant and will provide training for Syrian soldiers in Iran.

Senior political sources in Occupied Jerusalem told Ynet News that they doubt the credibility of the report. "The report must be authenticated," they said.

Under the alleged deal, Iran will help Syria acquire 400 Russian tanks, helicopters, fighter jets, armoured vehicles and missiles.