WASHINGTON (Reuters) - President George W. Bush said on Tuesday he will raise the issue of Iran's nuclear program with China's President Hu Jintao later this week and refused to rule out nuclear retaliation if diplomatic efforts fail.

Tehran insists its nuclear program is for peaceful electricity generation. Asked if his options included planning for a nuclear strike, as some news reports have said, Bush replied: "All options are on the table. We want to solve this issue diplomatically and we're working hard to do so." Bush said the best way to deal with Iran was through a united effort with countries "who recognize the danger of Iran having a nuclear weapon."

"I intend of course to bring the subject up of Iranian ambitions to have a nuclear weapon with Hu Jintao this Thursday," he told reporters in the Rose Garden.

"We'll continue to work diplomatically to get this problem solved."

Azerbaijani leader to meet Bush on Iran

Azerbaijani President Ilham Aliyev will hold talks next week at the White House with U.S. President George W. Bush on the impasse over Iran's nuclear program and other strategic issues in the Caspian region, officials said on Tuesday.

The Azerbaijani leader will travel to Washington on Tuesday for an official visit Wednesday and Thursday, Azeri presidential spokesman Tair Tagizade said.

Aliyev will also meet other U.S. officials to discuss issues including Iran, construction of oil and gas pipelines through Azerbaijan and steps toward resolving Azerbaijan's conflict with Armenia over the enclave of Nagorno Karabakh, a diplomatic source in the president's office told AFP.