"If Iran continues down this course, that would be the logical conclusion," the official said, speaking on condition of anonymity.

The official noted that the United States and Europe Tuesday reached tentative agreement on a draft resolution criticizing Iran for failing to declare sensitive parts of its nuclear program, but delayed seeking international sanctions until June.

A resolution on the matter will be submitted to the board of governors of the 35-nation nuclear watchdog the International Atomic Energy Agency (IAEA), meeting this week at its Vienna headquarters.

The State Department wants Iran to follow Libya's lead after the north African state announced in December it was renouncing all its weapons of mass destruction programs.

Washington also wants the IAEA to emphasize differences on the matter between the two nations.

"We think it's clear that Iran has not made any strategic decision to abandon a nuclear weapons effort," said State Department spokesman Richard Boucher.

"We also expect that the board at the IAEA would take up the matter of Libya and would move forward in a positive manner that can show that this kind of behavior deserves the credit of the board, deserves the commendation of the board and deserves to move forward toward closing the file.

"The contrast with Iran couldn't be starker," added Boucher in reference to the choice made by Libyan leader Colonel Moamer Kadhafi.

"When a country like Libya cooperates and decides to get rid of its nuclear program, does so sincerely, forthrightly and quickly, it will see the case closed. And we're moving toward that point with Libya.

"Where a country like Iran refuses to cooperate, only provides begrudging cooperation and refuses to disclose the full extent of its programs, it will remain, as (IAEA chief) Dr. (Mohamed) ElBaradei said the other day, under international scrutiny."

WAR.WIRE