Ahmadinejad: Osama Bin Laden Not in Iran, More Likely in D.C.

Osama bin Laden may be the most wanted man on the planet, but Iranian President Mahmoud Ahmadinejad said he has an idea where the terrorist leader is holed up: not a damp cave in the Middle East, but some far cozier setting in Washington, D.C.

The apparently sarcastic quip came during an interview with ABC News' George Stephanopoulos as Ahmadinejad responded to a claim in new documentary "Feathered Cocaine" that bin Laden has been living comfortably in Tehran, Iran, for years.

VIDEO: Irans president quips that the terrorist leader is holed up in Washington, D.C.
Mahmoud Ahmadinejad Thinks Osama Bin Laden Is in D.C.

"Your question is laughable," Ahmadinejad said with a smile. "Our position is quite clear. Some journalists have said bin Laden is in Iran. These words don't have legal value. Our position towards Afghanistan and against terrorism is quite clear... I don't know such a thing. You are giving news which is very strange.

"I heard that Osama bin Laden is in Washington, D.C.," he added.

Click here to read a full transcript of George Stephanopoulos' interview with Iranian President Mahmoud Ahmadinejad.

When that remark was challenged, Ahmadinejad pressed further.

"Yes, I did. He's there. Because he was a previous partner of Mr. Bush. They were colleagues in fact in the old days. You know that. They were in the oil business together. They worked together," he said.

Ahmadinejad: 'Rest Assured' Bin Laden's in D.C.

As for bin Laden sneaking into Iran, Ahmadinejad said Iran's borders are closed to all illegal entries, "whether it's the three American mountaineers, Mr. bin Laden, or anyone else," he said, referring to the three American hikers who were detained in Iran last July and remain in custody.

"Rest assured that he's in Washington," Ahmadinejad said. "I think there's a high chance he's there."

Click here to read what the Iranian president had to say about the possible U.N. sanctions, the Israeli military, Secretary of State Hillary Clinton, the three detained American hikers and the failed Times Square bomb plot in our full report.

ABC News' Kate McCarthy and Jennifer Pereira contributed to this report.

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