"We totally agree with the Iranian president. One or two more steps are needed. Let's start with Iran suspending it's uranium enrichment process and go from there," said White House spokesman Gordon Johndroe.

Earlier Tuesday, Ahmadinejad hailed last week's US intelligence report which said Tehran had halted its nuclear program in 2003 as a good move.

"It is a positive step, a step forward," Ahmadinejad said of the bombshell report, which contradicted previous White House assertions on the Iranian nuclear program.

"If they take one or two more such steps the issues will be totally changed and ... the way will be paved for the resolution of regional and bilateral issues," he told a news conference.

Despite the report by 16 US spy agencies, US President George W. Bush last week urged US allies to keep up the pressure on Iran saying it needed to come clean on the extent and purpose of its program, including its sensitive work in enriching uranium.

Iran and the US have had no diplomatic relations since 1980 when Washington cut ties during the 444-day siege of the US embassy in Tehran by Islamist students in the wake of the Islamic revolution.

Exchanges since then have been marked by rivalry and acrimony. But despite mounting tensions, the two countries have already held three rounds of talks this year over the security situation in Iraq.

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