Iran had Monday said it was ready to consider the British-French-German request, in what could be a major breakthrough towards ending a standoff over its nuclear programme, which the United States claims hides secret weapons development.
The surprise comments by Iranian officials marked a softening in Tehran's tone.
"The European proposal for an unlimited suspension of uranium enrichment can be implemented, provided it does not contradict the Islamic republic's criteria," chief nuclear negotiator Hassan Rowhani said, quoted by state television.
Rowhani said Tehran would continue cooperating with the international community but insisted that Europe must recognise its right to civilian nuclear technology.
Rowhani said suspending uranium enrichment indefinitely was not the same as imposing a permanent halt, an abandoning of enrichment which Iran will never accept.
Enriched uranium can be used either as fuel for a civilian reactor or as the explosive core of a nuclear bomb. Iran strongly rejects US accusations it is seeking to manufacture atomic weapons and says its program is a strictly peaceful endeavor to generate electric power.
Analysts and diplomats expressed skepticism, however, about Iran's tactics.
They said Iran was seeking to delay the matter until after US presidential elections November 2, and then give in just enough to avoid having the International Atomic Energy Agency send the Iranian nuclear dossier to the UN Security Council when the IAEA meets in Vienna on November 25.
"The Iranians think they are in a strong position now to complete their enrichment program" due to the United States being bogged down in Iraq, said Gary Samore of the London think-tank the International Institute of Strategic Studies.
"With the price of oil over 50 dollars a barrel, Iran doesn't think the threat of (UN) sanctions is credible," Samore told AFP by telephone.
Britain, France and Germany presented Iran last week with an EU-backed deal to receive valuable nuclear technology, including a light-water research reactor which would produce less fissionable material than the heavy-water reactor Tehran wants to build.
The deal includes a recognition of Iran's right to peaceful nuclear technology, measures to increase trade and backing of some of Iran's regional security concerns.
David Albright, a former IAEA inspector and president of the Institute for Science and International Security in Washington, said: "I can't believe Iran would turn down" the European trio's package.
"If Iran turns this down, reasonable people would have to conclude the country wants nuclear weapons," Albright said.
British Prime Minister Tony Blair maintained a tough line earlier this week.
"I don't know anyone who is talking about military action in Iran or Syria," he said. "But what we are insisting on, quite rightly, is that there is a proper obligation on the Iranians to comply with international law and regulations.
"Now I don't think dialogue has been exhuasted on this at all, but we do need the Iranians to understand that the international community does not find it acceptable that they develop nuclear weapons," he said.