JERUSALEM, Nov 18: Israel's military intelligence chief said he sees a positive side to a possible US dialogue with Iran on halting its nuclear programme, an assessment that broke ranks with Israeli foreign policy.

US President-elect Barack Obama has stated a readiness to talk with Iran, raising concerns in Israel over a weakening in Western pressure to curb Tehran's uranium enrichment.

“Dialogue with Iran while at the same time insisting on clear and defined parameters for stopping the Iranian nuclear programme is not necessarily negative,” Major-General Amos Yadlin said in a lecture in Tel Aviv on Monday, excerpts of which were broadcast on Israel Radio on Tuesday.

“If that fails, there could be a greater realisation that sanctions and the diplomatic campaign against Iran should be stepped up,” Yadlin said.

His comments clashed with remarks voiced by Israeli Foreign Minister Tzipi Livni after Obama was elected earlier this month.

She said talks he might hold with Iran could be seen as a sign of US weakness and that she did not support such a dialogue.

Yadlin, in his comments, did not refer directly to Livni, who is leading the ruling centrist Kadima party into a Feb 10 parliamentary election. But he said: “The way I see it, engagement is not appeasement.”

The West believes Iran's nuclear programme is aimed at building atomic weapons. Iran says the project is intended solely to produce electricity.

Speaking on Sunday, Prime Minister Ehud Olmert urged that international sanctions be applied with “greater force” to curb Iran's nuclear ambitions.

Olmert resigned in September in a corruption scandal but is staying on as caretaker prime minister until after the election and formation of a new government.

He plans to visit Washington next week for a farewell visit with President George Bush during which they will discuss Iran's nuclear programme, the Middle East peace process and US defence aid for Israel, an Israeli government official said.

Israel, widely believed to have the Middle East's only nuclear arsenal, describes Iran’s nuclear ambitions as a threat to its existence and has said it would keep all options open to stop it.

Israel's President Shimon Peres, speaking in London on Tuesday, said dealing with Iran was key to securing long-term stability in the Middle East

“...The real drama in Middle East will be the attempts of Iran... that has not only nuclear ambitions but imperial ambitions,” he told BBC radio. “Iran wants to govern the Middle East religiously.”—Reuters