The Tuesday report by Fars quotes the deputy navy chief in charge of technical affairs, Admiral Abbas Zamini, as saying Iran has begun "initial stages" of designing the nuclear-powered craft.
Adm. Zamini says Iran has developed "peaceful nuclear technology" and has both the capability and the right to build a submarine.
Iran and the West are odds over Tehran's nuclear program. The U.S. suspects it is aimed at developing weapons technology, a charge Iran denies.
Iran has domestically built several small submarines over the past years. It has recently overhauled one of the three non-nuclear Russian Kilo-class submarines it bought in 1990s.
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