TEL AVIV: Israel has reiterated it will not accept a nuclear Iran in its neighbourhood and will rule out no option in dealing with it.

Israeli Defence Minister Ehud Barak made this statement while meeting US Secretary of State Condoleezza Rice on Monday night.

According to reports from the meeting, Barak urged the US to continue to impose sanctions on Tehran.

Israel regards Iran as its primary existential threat, given Tehran's nuclear ambitions coupled with Iranian President Mahmoud Ahmadinejad's statements that the Jewish state should be erased from the map.