Apparently quoting from a cabinet decision, the press said the government had given the country's atomic energy agency the green light to look for investors, even though a halt on uranium enrichment remains in place.

If confirmed, the decision will be a fresh sign of the Iranian government's determination to resume the controversial practice of enrichment despite international calls for the suspension to remain in place indefinitely.

"The government is authorising the Iranian atomic energy agency to seek Iranian or foreign investors -- from the public or private sectors -- for the Natanz enrichment project," the press said.

According to the press, the decision was taken on Wednesday by the cabinet.

The central town of Natanz is the site of Iran's nuclear enrichment plant, which is to host thousands of centrifuges which spin at supersonic speeds to enrich the uranium.

The enrichment process provides the fuel for civilian nuclear power stations but in highly enriched form the uranium can also be used to make the explosive core of a nuclear bomb.

Iran says it only wishes to enrich to the low-level purity required for reactor fuel but its enemies have accused Tehran of seeking to make a nuclear bomb.

European countries, led by Britain, France and Germany, had attempted to persuade Iran to permanently suspend uranium enrichment as a watertight guarantee that its nuclear programme was peaceful.

However the talks came to a shuddering halt when the Islamic republic in August resumed its uranium conversion activities, the precursor of enrichment.

Iran has vehemently maintained that its right to enrichment is enshrined under the Nuclear Non-Proliferation Treaty (NPT).

The reports Iran is seeking investors for enrichment come amid concerns about the country's direction under hardline President Mahmoud Ahmadinejad after he called for Israel to be "wiped off the map".

The UN nuclear watchdog is due to meet on November 24 to discuss Iran's case and could theoretically acquiesce to US demands for Tehran to be hauled up before the UN Security Council.

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