Occupied Jerusalem: Israel and Germany are united in their concern over Iran's nuclear ambitions and both support the need to stop its enrichment of uranium, leaders of the two countries said on Monday.

"We regard with grave concern, in a very similar way, the continuation of Iran's steps to develop nuclear armament," Israeli Prime Minister Ehud Olmert said at a joint news conference in occupied Jerusalem with German Chancellor Angela Merkel.

"We are also joined in our acknowledgement that there is a need to continue to conduct a series of steps that will bring this development process to a halt," Olmert said.

Speaking after Olmert, Merkel said "the threats that [Israel] is seeing - we also consider them threats against us".

"We agree that we must do all we can to put as much pressure as possible on Iran, through Security Council measures and also through talks within the European Union," said Merkel, who began a three-day visit on Sunday to mark Israel's 60th anniversary.

"Germany is counting on a diplomatic solution," she said.