German Chancellor Angela Merkel has said a potential Iranian nuclear bomb would be a threat not just to Israel, but to Europe as well. 

Merkel made the remark at a joint news conference with Israeli Prime Minister Benjamin Netanyahu in Jerusalem. The Chancellor however stopped short of endorsing her host's demand that Tehran give up all sensitive nuclear projects under a negotiated deal with world powers.

Merkel added that Germany would pursue international talks with Tehran on its nuclear activities. The diplomacy was kick-started with an interim deal in November, which Netanyahu blasted as a historic mistake.

The Israeli Prime Minister has criticized easing sanctions on Iran while leaving its infrastructure for enriching uranium and potentially producing plutonium.

The German chancellor visited Jerusalem with her cabinet to mark almost 50 years of bilateral ties with Israel.