Iran has launched its first home-built satellite into orbit using a homegrown rocket, in a move that is certain to set alarm bells ringing in the international community.

"Dear Iranians, your children have put the first indigenous satellite into orbit," a jubilant President Mahmoud Ahmadinejad said in remarks broadcast on state television on Tuesday.

"With this launch the Islamic Republic of Iran has officially achieved a presence in space."

The launch -- which coincides with the 30th anniversary of the Islamic revolution -- comes as Iran remains at loggerheads with the international community over its controversial nuclear drive.

The West suspects Iran of secretly trying to build an atomic bomb and fears the technology used to launch a space rocket could be diverted into development of long-range ballistic missiles capable of carrying nuclear warheads.

Iran vehemently denies the charges, saying its nuclear programme is for peaceful energy purposes and that it has the right to the technology already in the hands of many other nations including its archfoe the United States.

Ahmadinejad has made Iran''s scientific development one of the main themes of his presidency, asserting that the country has reached a peak of progress despite international sanctions and no longer needs to depend on foreign states for help.

"On the 30th anniversary of the Islamic revolution and with the order of the president, the national Omid (Hope) satellite was launched," the Fars news agency reported.

"This is the first satellite launched in the history of our nation and it was carried by the Safir-2 satellite carrier," it said.