Israel and Saudi Arabia have been accused of plotting a Stuxnet-style attack to sabotage Iran's nuclear programme.
According to an unnamed Saudi source cited by Iran's semi-official Fars News Agency, the erstwhile enemies were set to team up to stage a massive cyber attack to cripple Iran's nuclear capabilities.
The source, said to be familiar with Saudi intelligence activities, said: "Prince Bandar bin Sultan bin Abdulaziz al-Saud and director of Israel's Mossad intelligence agency Tamir Bardo sent their representatives to a meeting in Vienna on November 24 to increase the two sides' cooperation in intelligence and sabotage operations against Iran's nuclear programme.
"One of the proposals raised in the meeting [between the envoys] was the production of a malware worse than Stuxnet [computer malware designed to disrupt Iran's nuclear technology] to spy on and destroy the software structure of Iran's nuclear programme."
The Sunday Times claimed that Israel and Saudi Arabia were working together to bring down Iran's nuclear activities, although both countries denied that.
The interim deal struck in Geneva between Iran and world powers which lifts some Western sanctions in return for a block on uranium enrichment has infuriated both Israel and Saudi governments. Israel has been outspoken in its criticism of the agreement, although in public Riyadh cautiously welcomed it.
Differences have grown between the US and Saudi Arabia over Washington's "softer" policies on Iran and Syria.
The US and Israel were said to be behind a Stuxnet attack on the Natanz nuclear plant in Iran in January.