"The Islamic Republic in no way seeks weapons of mass destruction and with respect to the needs of Islamic nations for nuclear technology, we are ready to transfer nuclear knowledge to these countries," Ahmadinejad was quoted as saying.

Ahmadinejad's offer was made on the sidelines of a United Nations summit in New York during bilateral talks with the Turkish Prime Minister Tayyip Erdogan.

"Iranian scientists have mastered the fuel cycle and we have clearly decided to peacefully use this technology within the framework of the NPT (non-proliferation treaty), international laws and in cooperation with the International Atomic Energy Agency (IAEA)," Ahamdinejad said.

Tehran insists it only wants to generate electricity, and insists it has a "right" to press on with such work as a signatory of the NPT.

But the country is widely suspected of seeking to master the fuel cycle and uranium enrichment technology in order to provide itself with the option of making nuclear weapons.

Iran resumed converting uranium last month in violation of a freeze agreed with Britain, France and Germany. Uranium conversion is a precursor to enrichment, which can produce reactor fuel but also the core of a nuclear weapon.

The European Union's 'big three' as well as the United States are pushing for the issue to be referred to the United Nations Security Council.

Ahmadinejad is expected to unveil new proposals on how to resolve the dispute when he addresses the United Nations summit for a second time on Saturday.

Officials accompanying the president told official media Thursday that Ahmadinejad was slated to present his "innovations" in a speech expected to last up to 30 minutes.

No further details on his proposals were given, although officials in Tehran have already indicated it would involve Iran maintaining its sensitive nuclear fuel activities while pledging to comply with UN inspectors from the

Iran, which for the past two years has been negotiating over the issue with Britain, France and Germany, is also keen to widen the talks to include more sympathetic countries including members of the Non-Aligned Movement.

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