Khatami said he remained optimistic that negotiations with European states, set to resume in Paris on Friday, would not result in Iran being brought before the UN Security Council for possible sanctions.

"Our nation must be given the assurance that it will not be stripped of its right (to enrich uranium)," Khatami told reporters at the Iranian parliament.

On Friday's new round of talks, he said: "I am optimistic."

"Both sides are showing flexibility."

Washington charges that Iran is using its nuclear programme as a cover for efforts to develop a nuclear bomb, allegations vehemently denied by Tehran which points out it has the right under the Nuclear Non-Proliferation Treaty (NPT) to enrich uranium for peaceful purposes.

"The conditions for progress (in Iran's talks with the Europeans) exist if our right is recognized," said Khatami.

"We are prepared to reassure the Europeans and the world for them to know that nuclear technology will not be diverted toward nuclear weapons.

"Neither the government nor the nation will allow us to renounce our national right, which is also a matter of national pride," said Khatami. "Any suspension that might take place will be voluntary."

Khatami's comments came after Iranian lawmakers in the conservative-dominated parliament passed a bill on Sunday backing the resumption of uranium enrichment, a key phase in the nuclear fuel cycle.

"Negotiations cannot last forever. There must be a timetable. We will negotiate in order to have our demands met and to give the world assurance," Khatami asserted.

Mohamed ElBaradei, the head of the UN nuclear watchdog who has set a November 25 deadline for Iran to meet international demands on its nuclear programme, called Monday for the suspension to remain in place.

"In light of serious international concerns surrounding its nuclear programme, it should do its utmost to build confidence by voluntarily ceasing enrichment and all related activities," the International Atomic Energy Agency (IAEA) chief said.

In his annual speech to the UN General Assembly, ElBaradei said it was also in Iran's interest to "pursue a policy of maximum transparency."

The European Union, represented by Britain, France and Germany, is trying to work out a deal to keep the IAEA, which meets in Vienna on November 25, from deciding to take the dossier to the Security Council.

In return for full suspension of uranium enrichment by Iran, the EU is offering peaceful nuclear technology, including nuclear fuel, as well as trade advantages and support on security issues.

Iranian officials have said Tehran will "never" give up its nuclear fuel programme despite its readiness to talk to the European powers.

But last week the Tehran government said it was ready to consider a European request to maintain a suspension on enriching uranium, in what could be a major breakthrough towards ending the deadlock.

European Union foreign ministers gathered Tuesday in Brussels ahead of an EU leaders' summit this week to tackle aid for Iraq but also Iran's nuclear drive.

"I don't think it's an issue coming to a head," Europe Minister Denis MacShane told reporters in Brussels.

"We're working very closely... with the United States, and we're working through the IAEA in Vienna to get a solution that I think the entire international community, from Moscow to Washington, is agreed on," he said.