Occupied Jerusalem: Israel has successfully tested a new defence system designed to intercept rockets fired from southern Lebanon and the Hamas-ruled Gaza Strip, public radio reported on Sunday.

The "Iron Dome" system is expected to be fully operational within a year and will be able to intercept the military-grade Katyusha rockets used by Lebanon's Hezbollah fighters and the cruder Qassam rockets favoured by Hamas.

Citing Israeli security officials, public radio said the system would also be effective against mortar fire.