North Korea has released a propaganda video showing an American city being attacked by missiles while an instrumental version of ‘We Are the World’ plays in the background.

Pyongyang has vowed to conduct its third nuclear test, and has for months unleashed a stream of critical rhetoric aimed at what it says is a US policy of hostility that has driven it to boost its nuclear programs.

However, the bizarre video posted by North Korea's official website goes a step further, graphically rendering what appears to be a North Korean's dream of the future.

In the three-minute-long video, jets fire missiles into a burning American city, Koreans rejoice under a flag depicting a reunified Korea and a man dreams of travelling on a space shuttle propelled by a rocket similar to one Pyongyang launched in December.

The UN says that launch was a banned missile test.

Pyongyang says it was putting a peaceful satellite into orbit.

As the space shuttle in the video flies around the globe, the North's December rocket lifts off and the screen shows a message vowing that the sleeping man's dream will one day come true.

The video describes the burning American city as a "den of evil" responsible for tyranny and invasion.

Parts of the video apparently come from the popular "Call of Duty: Modern Warfare 3" video game developed by a US software company.

The video later disappeared from North Korea's account on YouTube after a copyright complaint.

The video's entire soundtrack consists of an instrumental-only version of the 1985 song ‘We Are the World’, written by Michael Jackson and Lionel Richie and originally sung by a chorus of dozens of US celebrity singers in a recording to benefit charities in Africa.

Washington, Seoul and others say any North Korean nuclear test would be a violation of UN resolutions and will be met with strong international punishment.

US State Department spokeswoman Victoria Nuland told reporters she has seen the video but won't "dignify it" with a response.