Iranian President Mahmoud Ahmadinejad on Friday announced his intention to appoint a terrorist involved in the 1994 bombing of a Jewish community center in Argentina as Iran's next defense minister.

Ahmad Vahidi is wanted by Interpol for his role in the bombing of the Argentine Israeli Mutual Association (AMIA) Jewish Community Center in Buenos Aires, which left 85 people dead and wounded more than 300 others.

Iran has denied involvement in the bombing, but its role has since been clearly established by international investigators.

Vahidi's expected appointment sparked outrage in Israel, Argentina and the US.

US State Department Spokesman Ian Kelly told reporters that the Obama Administration is not yet sure how to handle a situation whereby a wanted international terrorist could be invited to attend events at the UN headquarters in New York.