Iran has signed a preliminary deal with Germany's Siemens to manufacture equipment for the country's electricity industry, a report said.

An agreement had been reached with Siemens for knowledge and technology transfer as well as the construction of a  equipment plant for power generation industry, Mehr News Agency quoting Arsalan Fat'hipour, a member of Iran Electricity Industry Syndicate, said.

He said that during a visit to Germany, an Iranian delegation signed a contract with Siemens and a plant will be built for manufacturing power equipment under the licence of the German company.

He said the agreement with Siemens will be finalised into a contract in two months.