Davutoglu said his office was working to arrange for him to visit Tehran later Tuesday or after a two-day trip to Kazakhstan which ends Friday.

"But it is very likely that the visit could take place later today," the minister told reporters in Ankara.

Iran said on Tuesday that it has started the process of producing 20 percent enriched uranium, defying warnings from world powers of fresh sanctions against the Islamic Republic.

The enrichment coincides with Western efforts for Iran to commit to a proposal to ship its low-enriched uranium (LEU) in return for nuclear fuel for a Tehran reactor.

Although Iran has said it is ready "in principle" to sign on to the proposal, it insists that not all its LEU be shipped out in one go as world powers are demanding.

"The (Western) proposal is still valid ... We believe there is still an important chance" for a resolution, Davutoglu said.

He added that he was plannning to hold talks with Iranian President Mahmoud Ahmadinejad and Foreign Minister Foreign Minister Manouchehr Mottaki in Tehran.

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