"We still have a window of opportunity," he said in Vienna after the board of governors of the International Atomic Energy Agency adopted an EU proposal calling on Iran to halt nuclear fuel work.

"Every opportunity should be made to defuse the crisis, through dialogue," he added.

ElBaradei said that by adopting the proposal, the IAEA board had judged it essential that Tehran reverse its resumption this week of uranium conversion activities at its Isfahan plant as a "confidence-building measure" after years of dissimulation.

Talks to secure guarantees that Iran is not covertly developing a nuclear weapons capability under the guise of civil operations have been led by EU heavyweights Britain, France and Germany.

The IAEA director said he was "very encouraged by the statements made by Iran and the three Europeans that they are ready to continue negotiations."

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