Israel is not prepared to tolerate an Iranian presence on its border, he said in an interview.

Peres was referring to Hezbollah - the Iranian-and Syrian-backed Shi'ite Muslim group which fought Israeli forces in the 2006 war.

"If Syria will understand that they can't have the Golan Heights and keep Lebanon as a base for the Iranians, then the decision will be clear," he went on.

"But if she wants the Golan Heights back and keeps her bases in Lebanon - which are controlled and financed by the Iranians - no Israeli will agree to have Iranians on our borders."

Syria has insisted on the full return of the Golan Heights, captured by Israel in 1967.

Syria and Britain have been holding high-level intelligence talks in order to combat terrorism, Syrian officials have told the BBC.

They added new levels of co-operation had been reached during the visit of Foreign Secretary David Miliband to Syria this week.