"For the moment, we do not want to leave the Non-Proliferation Treaty or stop applying the additional protocol," Khatami told reporters after a cabinet meeting.

"But if the European reslolution is adopted in its current form, that means the Europeans do not respect their obligations to us and we will not have any obligations to them," he said.

"If this process continues, we will not have any moral obligation to contiue the voluntary suspension of enrichment," the president warned.

He described the British-French-German draft resolution to be put before the IAEA's board this week as "very bad" and beyond "the legal framework" of the NPT.

"For the moment we want to continue cooperating with the Europeans, the international community and the agency. We do not want to stop," he added.

The draft resolution calls for a probe into Iran's suspected nuclear weapons programme to be toughened and wrapped up in months.

WAR.WIRE