Amid concerns that Tehran is trying to develop nuclear weapons, Bill Rammell said the government supported technology that would see a defensive shield covering the continent.
His comments came after Nato secretary-general Anders Fogh Rasmussen called for a new missile defence system to protect the organisation and its allies – including Russia – against the growing threat of weapons proliferation.
Labour MP Denis MacShane asked whether Mr Rammell agreed with Mr Rasmussen that Europe "needs to develop a missile shield system against a future Iranian missile, with or without nuclear warheads".
The minister replied: "I believe there is a strong case. That is why we as a government have supported the technology."