Iran test-fired two types of its middle-range Shahab missiles with multiple warheads on Sunday, state television reported.

The Shahab-1 and Shahab-2, with a range of between 300 kilometres and 700 kilometres were successfully fired, Hossein Salami, air force commander of the elite Revolutionary Guards, was quoted as saying.

"The missiles shot have precisely hit the targets," Salami said.

"Multiple warheads that have been newly entered our mid- and long-range missiles system," would be used, Salami said before the tests.

Salami also said that the exercise aimed at practicing for "long wars, moving the missile installations from one point to another as well as simultaneous and non-simultaneous shots at convergent and divergent targets."

Iran will test long-range missiles on Monday as part of the third stage of its missile war games, showcasing its military force on the occasion of the "Sacred Defence" week that marks the start of the Iran-Iraq war (1980-1988).

Tehran's manoeuvres come after US President Barack Obama earlier this month scrapped his predecessor George W. Bush's plan to deploy missile interceptors in Poland and a powerful tracking radar in the Czech Republic by 2013.

He said he had decided to replace the shield with a more mobile system using mainly sea-based interceptors.

In taking the decision, Obama emphasised the threat of Iran's short-range and medium-range missiles instead of the potential danger of its longer-range weapons.

The White House said the intelligence community now believed Iran was developing shorter-range missiles "more rapidly than previously projected," while progressing more slowly than expected with intercontinental missiles.