The Chosun Ilbo said development of the new missile, with a range of up to 4,000 kilometres (2,500 miles), had been completed and deployment was imminent.

Defense analysts told South Korea's most widely read newspaper that Pyongyang may unveil the missile during celebrations marking the 55th anniversary of the foundation of the communist state.

North Korea will stage a "mammoth" parade to mark the occasion, Pyongyang's official media has announced. According to reports in Seoul, missiles and tanks have been moved to an airport outside the North Korean capital in preparation for the festivities.

South Korea's defense ministry declined to comment on the report.

Chosun Ilbo indicated that the new missile had a longer range than the Taepodong-1 missile which was test-fired over Japan in 1998, triggering international alarm.

Speculation has mounted that North Korea could choose Tuesday's celebrations to carry out a nuclear or missile test.

The United States has warned that North Korea would face "consequences" if it made good on a threat to carry out a nuclear test allegedly made at the six-way crisis talks in Beijing late last month.

The South Korea newspaper said Pyongyang had completed development of the new missile last year.

"We obtained an intelligence that a new missile, which is different from existing Scud, Rodong and Taepodong missiles, was developed last year," an intelligence source was quoted as saying.

North Korea has already deployed shorter-range Scuds and Rodongs with a range of 1,300 kilometers, while actively developing longer-range Taepodong missiles.

The development of Taepodong-2 missiles with a range of up to 6,000 kilometers is underway in North Korea, according to South Korean defense analysts.

North Korea's missile development has been regarded as a major threat to regional security, on top of its nuclear weapons drive.

At a summit between the leaders of Japan and North Korea in September last year, North Korea pledged to extend a moratorium on ballistic missile testing beyond 2003.

But North Korea has since vowed to boost its military strength, insisting it would be the next target of a pre-emptive US military attack to snuff out its suspected nuclear arms ambitions.

SPACE.WIRE