North Korea will not allow the International Atomic Energy Agency's (IAEA) inspectors to examine the country's nuclear program, in retaliation to the UN's tough stand against its rocket launch.

Pyongyang went a step further and said it would continue with its satellite program and launch another rocket with a satellite in the next five years, according to the Japanese media as reported by The Telegraph.

Pyongyang had earlier promised that it would allow international nuclear monitors to examine its uranium enrichment program, in exchange of a food aid deal with the US.

However, North Korea said it would reject the IAEA nuclear monitors in the wake of the decision by the US to scrap the food deal and UN's condemnation following its failed rocket launch.

The US and North Korea had signed a deal two months ago, under which the US was supposed give several thousand metric tons of food aid to North Korea and, in exchange, Pyongyang would stop its nuclear program and ballistic missile testing. The deal also allowed international nuclear monitors access to the North's Yongbyon nuclear processing facility.

However, North Korea announced its satellite launch using a rocket with the ballistic missile technology and went ahead with the launch defying international pressure to back off. The rocket launch ended in a humiliating failure as it exploded immediately after takeoff.

The US scrapped the food deal while the UN Security Council strongly condemned the rocket launch and ordered tightening of sanctions.

This has prompted North Korea to announce that the nuclear moratorium agreement has been abandoned, while the state media has blamed the US for the same.

Nevertheless, collapsing of the deal means that now North Korea will not be bound by the UN resolutions and might even go ahead with its third nuclear test, The Telegraph report said.

It is being speculated that North Korea is preparing for an underground nuclear test. World powers, including China, Pyongyang's closest ally, have warned it against any further provocations.