Iran Said on Sunday it will put up a candidate for the post of OPEC secretary-general, unleashing a battle with powerhouse Saudi Arabia for the key post at the helm of the influential oil cartel.

"Iran has a candidate for the position of OPEC secretary-general," an Iranian oil ministry source said. Oil industry sources said the candidate would probably be Iran's OPEC governor, Mr Hossein Kazempour Ardebili, though Iranian oil ministry sources said it was not certain.

Mr Ardebili, a former Iranian ambassador to Japan, sought the job in 1994 but was defeated when OPEC could not agree between him or Venezuela Oil Minister Mr Alirio Parra. Compromise candidate Mr Rilwanu Lukman of Nigeria was then elected to the post.

Saudi analysts say the kingdom is trying to reinforce its already strong influence inside OPEC and stabilise oil prices by filling the post with a man from Saudi Arabia.