Britain's media regulator has revoked Iranian news channel Press TV's licence to broadcast in the UK in a move that could lead to further deterioration of diplomatic relations between the two countries.

Press TV is a 24-hour news channel owned by the Iranian state, available via satellite around the world and on the Internet. Its English-language service will be removed from Sky TV's satellite platform in Britain on Friday. Press TV said on its website the move was "a clear example of censorship".

The roots of the decision lie in a ruling last month to fine the channel 154,700 US dollars for broadcasting an unauthorised interview with an imprisoned Newsweek journalist.

Britain shut Iran's embassy in London and expelled its staff in November after its embassy in the Iranian capital of Tehran was attacked by a crowd upset with sanctions imposed by Britain.

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