The International Atomic Energy Agency (IAEA) is standing by in order to give Iran more time to hand over a letter officials hope will announce a halt in uranium enrichment, a key process in the nuclear fuel cycle.

The letter could then be included in a report for an IAEA meeting here on November 25 that will consider US charges that Tehran is secretly developing nuclear weapons.

Britain, France and Germany are trying to strike a deal for Iran to suspend crucial nuclear fuel cycle activities so the IAEA will not send the dossier to the Security Council, which can impose punishing sanctions on Tehran.

Iranian officials handed their reply late Thursday on the proposed deal to the three countries and to Javier Solana, the European Union's foreign policy chief, the French foreign ministry said without divulging its contents.

"We are in the process of analysing the elements of the response," ministry spokesman Herve Ladsous said in Paris.

Meanwhile, the Vienna-based IAEA is holding up its crucial report for the November 25 meeting in order to give Iran more time to confirm it will suspend uranium enrichment so that it can be taken into account, a diplomat close to the IAEA told AFP.

The report had been set to be issued Friday, roughly two weeks before the IAEA's 35-nation board of governors meeting.

The report is now expected Saturday, but may be delayed further.

According to diplomats in Vienna, the Iranians had a letter to the IAEA ready to go on Thursday in which Tehran would agree to suspend enrichment and call on the agency to verify the halt.

But the Iranians, who were talking with European diplomats in Tehran about the EU-proposed suspension, also insisted a second letter go to the Europeans to explain how they interpreted the agreement.

When the Europeans got this letter, they told the Iranians not to send the original letter to the IAEA, diplomats said.

They said there was a problem with the question of uranium conversion, the process of making the fuel for enrichment.

The EU is seeking a suspension of all uranium enrichment-related activities until a long-term agreement is reached, no matter how long this takes.

One diplomat close to the talks said the Iranian response had "opened up new questions."

These questions had to be answered since the Europeans "really attach great importance to reaching a clear-cut agreement with Iran where there is no doubt whatsoever, particularly with regard to suspension," the diplomat said.

Another source said that while the Iranians were willing to suspend making the uranium hexafluoride (U6) gas that is the actual feedstock for enrichment, they wanted to continue making the pre-products for the feedstock, namely U4 gas and yellowcake uranium ore.

Being able to include an agreement from Iran to suspend uranium enrichment in the IAEA report "is very important not only to the Iranians but also to the Europeans, and whether it's a day or two late is not that important," the diplomat close to the agency told AFP.

"If this gives the Iranians time to put an enrichment suspension in the report, then it's worth it."

In return for Iran agreeing to curb its nuclear ambitions, Europe's three major powers have offered civilian nuclear technology, including a light-water reactor and access to nuclear fuel, increased trade and help with Tehran's regional security concerns.

Iran's student news agency ISNA earlier quoted an unidentified official as saying there would be no more negotiations until the Europeans had studied the Iranian response.

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