Speaking in an interview with Aljazeera, Albright said that the US administration was contemplating the military option against Iran, but said she had urged American officials not to give up on the diplomatic option.

"I believe the US administration is keeping the military option on the table  - there were discussions about it - but I hope that the focus [is] on the diplomatic option because the military option would entail repercussions that were not thought about carefully," Albright said.

"We have to proceed with the multi-track approach in the Security Council, because diplomacy there is very important, but I suggest the holding of direct dialogue between the US and Iran so that we could discuss issued face to face, not to satisfy them but as a way to understand what is happening."

On Iraq, Albright said Iraq could be the worst foreign policy catastrophe for the US. She said the US administration has to seek to understand better the religion factor in Iraq and the region.

She also said that the Iraq war was far worse than Vietnam war.