U.S. Secretary of State, Hillary Clinton, has warned that Iran is moving towards a military dictatorship. She says top posts in the country are being "supplanted."

Speaking to students of Qatar's branch of Carnegie-Mellon University in Doha, Clinton said she believes Iran's Revolutionary Guard Corps appears to have gained so much power that it is effectively supplanting the government.

She said Washington is open to "engagement" with Iran, but, at the same time, it will not stand idly by while it pursues a threatening nuclear program.

Hillary Clinton, U.S. Secretary of State, said, "What we're trying to do is to send a message to Iran, a very clear message, that we still would be open to engagement, we still believe that there is a different path for Iran to take, but we want the world united in sending an unequivocal message to Iran that we will not stand idly by while you pursue a nuclear programme that can be used to threaten your neighbors and even beyond. "

Clinton indicated though, that there is no plan to attack Iran and that Washington is interested in changing Iran's behavior.

Meanwhile, Iran's English news channel Press TV has reported that the country received a new proposal last week from the United States, Russia and France on a possible nuclear fuel deal. However, the report has been dismissed as fake by the three countries.

Iran announced that it began to produce 20 percent enriched uranium last week and that the production would come to an end only if "terms and conditions for a swap deal" are met.