"Enrichment will continue on Iranian territory within the framework of Iran's peaceful nuclear programme and the IAEA (International Atomic Energy Agency)," government spokesman Gholam Hossein Elham told reporters.

"The information that Iran would quit uranium enrichment on its soil and transfer it to Russia is not correct," he added.

On Sunday Russian National Security Council chief Igor Ivanov and Deputy Foreign Minister Sergei Kislyak held a series of meetings with top Iranian officials led by Ali Larijani, Tehran's top negotiator.

Russia has been offering to produce nuclear fuel on Iran's behalf in order to ease fears Tehran would divert its enrichment programme to making warheads.

But as a signatory to the nuclear Non-Proliferation Treaty (NPT), Iran insists it has a right to uranium enrichment.