France, Britain and Germany -- known as the E3 -- had planned to introduce a resolution at the meeting of the International Atomic Energy Agency's board of governors, with the support of the United States, criticising Iran's suspension of some IAEA inspections.

"We have decided to not present the resolution," the German foreign ministry said, confirming information from diplomatic sources.

"Iran must now prove that it is serious in its wish to fully relaunch" the nuclear deal," it added.

One source pointed to "initiatives undertaken by (IAEA Director General Rafael) Grossi" and signs of "good faith" on the Iranian side to explain the decision to drop the resolution, which had not been formally submitted.

Grossi announced earlier Thursday that Iran had agreed to hold a series of meetings with the UN nuclear watchdog to "clarify a number of outstanding issues".

US President Joe Biden has said he is willing to bring the United States back to the landmark 2015 deal, known as the JCPOA.

It has been unravelling since Donald Trump pulled the US out of the agreement in 2018.

- 'Wisdom prevails' -

A French diplomatic source said "encouraging signs" from the Iranians would not have been achieved "if the threat of the resolution hadn't been maintained until the end.

"Things are going in the right direction," the diplomat said, adding that it was hoped a meeting proposed by the EU of the remaining 2015 participants -- Iran, France, Germany, Russia, China and the UK -- could take place within two weeks, with Brussels the likely venue.

Iran welcomed the European decision not to go ahead with a resolution.

"Today's developments can keep open the path of diplomacy initiated by Iran and the IAEA," Iranian foreign ministry spokesman Saeed Khatibzadeh said.

"Iran hopes the parties participating in the agreement can seize this opportunity, with serious cooperation, to ensure the full implementation of the agreement by all," he added.

Russia and China also hailed the news.

Moscow's Ambassador to the IAEA Mikhail Ulyanov said the resolution "could have led to uncontrolled escalation".

"Now diplomacy has a real chance to succeed," he tweeted.

China urged all interested parties "to seize the opportunity," according to a message posted by the permanent Chinese mission in Vienna.

Grossi said "a technical meeting will take place in Iran at the beginning of April" as part of a new process aimed at clarifying queries the IAEA has raised about the possible previous presence of nuclear material at undeclared sites.

He said it was his "intention to try to come to a satisfactory outcome for all of this in time for the next regular session of the board of governors" in June.

The Iranian ambassador to the IAEA, Kazem Gharib Abadi, tweeted Thursday that "a glimpse of hope is looming to prevent unnecessary tension.

"Wisdom prevails," he added.

- Uranium metal -

Earlier this week a report in the Iranian Vatan-e-Emrouz newspaper also said Tehran had "temporarily suspended the production of uranium metal on the order of the President (Hassan Rouhani)".

The JCPOA put a 15-year ban on uranium metal production in Iran but Tehran says it has the right to breach this and a series of other JCPOA limits in retaliation for the US withdrawal from the accord and subsequent imposition of sanctions.

Late last month Iran suspended some IAEA inspections as US sanctions remained in effect.

The suspension was described by Grossi as a "huge loss" for the agency.

However, after two days of talks between Grossi and Iranian officials in Tehran, a three-month arrangement was agreed under which Iran pledged to keep recordings "of some activities and monitoring equipment" and hand them over to the IAEA as and when US sanctions are lifted.

Iran had threatened to suspend that temporary arrangement in the event of a critical resolution at the IAEA.

Despite their decision not to go ahead with a resolution, European states criticised Iran's suspension of inspections in their statements to the IAEA's board this week, as did the US.