ElBaradei, head of the International Atomic Energy Agency, made the comments during a meeting with Spanish Prime Minister Jose Luis Rodriguez Zapatero, the government said in a statement.
"He expressed to Mr. Rodriguez Zapatero his desire ... that the European Union gets more involved" to "encourage" dialogue with Tehran, the statement said.
ElBaradei, who won the Nobel prize for his efforts to stop the spread of nuclear weapons, also met with Spanish Foreign Minister Miguel Angel Moratinos.
The United Nations has already adopted two resolutions imposing sanctions on Iran for defying calls to halt its sensitive uranium enrichment work. Tehran denies the United States' claim that it seeks nuclear weapons.
In March, the UN Security Council gave Iran 60 days to suspend enrichment or face further punitive measures, with the latest deadline set to expire next week.
ElBaradei's agency is to issue a report on May 23 on Tehran's nuclear work which could lead to further sanctions.