Jerusalem, Oct 4 (IANS): Iran will not stop Israel from realising normalisation of ties with Saudi Arabia, Israeli Prime Minister Benjamin Netanyahu said, responding to a statement from Iran's Supreme Leader Ali Khamenei.

Iran will not prevent Israel from "further expanding the circle of peace for the benefit of the citizens of Israel, the peoples of the region and all humanity," Netanyahu said on Tuesday in a statement released by his office.

The Israeli Prime Minister added that Iran failed to prevent Israel from achieving the so-called Abraham Accords, in which the UAE, Bahrain and Morocco agreed to normalise ties with Israel, in 2020, Xinhua news agency reported.

The remarks came after Khamenei warned earlier on Tuesday that countries seeking to normalise relations with Israel "are betting on a losing horse," according to Iranian state media.

Brokered by the US, Israel has been in touch with Saudi Arabia over a potential peace deal between the two countries. After meeting with US President Joe Biden on September 20 in New York, Netanyahu said the normalisation of ties between his country and Saudi Arabia could be "within reach".

After years of open hostility, Iran and Saudi Arabia agreed in March to restore diplomatic ties.