VIENNA (Reuters) - Iran has informed the U.N. nuclear agency that it plans to use more modern uranium enrichment centrifuges at its Natanz plant, a diplomat said on Thursday.

Such a step could enable Iran to refine uranium faster than it can at the moment and increase concerns in the West and Israel about the goals of Tehran nuclear program.

Western power suspect Iran of seeking to develop atomic bombs, a charge Iran denies.

(Reporting by Frederik Dahl; Editing by Jon Boyle)