Britain's Prime Minister Tony Blair shares the US’ belief that Iran harbours ambitions to become a nuclear power and is determined to address what he sees as a "huge concern," a senior British government aide was quoted as saying in today's edition of The Times.

The broadsheet said it had learned that Britain's two-year-old policy of "engagement" with Iran would be reviewed unless the Islamic state curbs such ambitions.

"The prime minister believes this is a matter of huge concern," the daily quoted the senior government aide as saying.

"There is no plan of action, but he is determined that it must be addressed," the aide added.

The Times also said that Blair doubts whether Iran's President Mohammed Khatami still exercises any moderating influence over the hardline regime.

Five Japanese were arrested yesterday in Tokyo on suspicion of illegally exporting missile-linked equipment to Iran. – Sapa-AFP.