Quoting unidentified sources, the report says 'President Bush has signed a "nonlethal presidential finding" that puts into motion a CIA plan that reportedly includes a coordinated campaign of propaganda, disinformation and manipulation of Iran's currency and international financial transactions.'

According to the report, 'the covert plan is designed to pressure Iran to stop its nuclear enrichment program and end aid to insurgents in Iraq.'

Current and former intelligence officials say the approval of the covert action means the Bush administration, for the time being, has decided not to pursue a military option against Iran, the report said.

Under US law, the CIA needs an official presidential finding before carrying out such covert actions, it said.

Earlier, the Blotter and ABCNews.com had reported that the US has supported and encouraged the Jundullah, an Iranian militant group that has conducted deadly raids inside Iran from bases on the rugged Iran-Pakistan-Afghanistan "tri-border region." While US officials deny any "direct funding" of Jundullah groups, they admitted being in regular contact with the leader of Jundullah.

Claims by American intelligence sources that the Jundullah has received money and weapons from Pakistan have been officially denied by Islamabad.

According to the Blotter, 'a report broadcast on Iranian TV last Sunday said Iranian authorities had captured 10 men crossing the border with $500,000 in cash along with "maps of sensitive areas" and "modern spy equipment." A senior Pakistani official told ABCNews.com the 10 men were members of Jundullah, which has been recruiting and training "hundreds of men" for "unspecified missions" across the border in Iran.

Many readers of the popular blog  have slammed ABC for disclosing US plans, with some describing the news organization as 'traitors.'

'Why, if it is covert, are you airing it and telling the Iranians what we are doing? Do you want more war and more killings of Americans? Let them do their job's and keep your mouths shut,' fumed Ron Peterson.

A few however, echoed Margie Davis, who said: 'I for one appreciate ABC's courage in letting Americans know what the government is up to. It's the present insane US government, not the Iranian, that's a threat to US citizens.'