Tehran, Aug 24 (Xinhua) Iran is designing a 360MW nuclear power plant, said Mohammad Saeedi, deputy head of Iran Atomic Energy Organisation (IAEO).

The new power plant, the country's second one, will be constructed in Darkhoin, a city in southwestern province of Khuzestan, IRNA news agency quoted Saeedi as saying.

'The site has been chosen and the preparation process is under way,' Saeedi said.

'Gradually the complementary design phase and its building will begin,' he said.

Russia is helping Iran to build the country's first nuclear power plant in the southern port of Bushehr.

The plant was expected to be launched early this year, but its operation was postponed for several months due to disputes on payment.

Bushehr nuclear power plant will be completed by the end of 2008, Russian ambassador to Tehran Alexander Sadovnikov said Saturday.

Iran is preparing to build more nuclear power plants, IRNA news agency reported.

Ahmad Fayyazbakhsh, deputy chief of IAEO said state-owned nuclear energy production company has signed agreements with six local companies, assigning them to hunt for potential sites for new nuclear power plants within 13 months.

The US and its Western allies fear that Tehran is trying to build nuclear weapons. But Iran insists that its nuclear programme is for peaceful purposes only.