Kharazi had a 40-minute discussion with Blair, preceded by talks with his British counterpart Jack Straw, which also covered the situation in Iraq, Straw told a joint press conference.

"The key issue we discussed was Iran's progress in respect of the nuclear dossier," Straw said, referring to long-running concerns about Tehran's nuclear programme.

"We discussed the letters the three European foreign ministers sent in August, the agreement which we reached in Tehran on October 21 and subsequent discussions, and then we also went on to talk about Iraq."

Last October, Straw and his counterparts from France and Germany secured Iran's agreement to open its nuclear programme up to closer inspections during a visit to Tehran, following up previous statements of concern about the issue.

Iran had previously been severely reprimanded by the International Atomic Energy Agency, the United Nations' nuclear watchdog, for failing to reveal a full account of its nuclear activities.

Following on from the foreign ministers' trip, in December Tehran bowed to international pressure by signing up to an additional protocol to the nuclear Non-Proliferation Treaty, allowing a tougher IAEA probe.

However in an apparent reversal, at the end of last month Iran's atomic energy body chief announced that the country had resumed work on experimental production of nuclear fuel.

At the press conference, Kharazi said his country had been "working very hard" with the European nations to resolve the nuclear question.

"Big steps have been taken so far," he said, adding that further progress was expected soon.

WAR.WIRE