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US President Barack Obama has rejected a call by Israel for any nuclear agreement with Iran to be conditional on Tehran's recognition of the Jewish state's right to exist, branding it a "fundamental misjudgement," AFP reported.

Speaking after Israel proposed its own terms for the accord, Obama told US radio network NPR Monday that demands for Iran to recognise the country go beyond the scope of the agreement.

"The notion that we would condition Iran not getting nuclear weapons in a verifiable deal on Iran recognising Israel, is really akin to saying that we won't sign a deal unless the nature of the Iranian regime completely transforms," he said in a drive to sell the deal to a hostile Congress.

"And that is, I think, a fundamental misjudgement."

Israel's government reacted angrily to the historic framework agreement on Iran's nuclear programme announced last week, with a final accord due by June 30.

Prime Minister Benjamin Netanyahu demanded Sunday that Iranian recognition of the Jewish state's right to exist be written into the agreement.