The so-called EU-3 -- Britain, France and Germany, as well as Solana -- are preparing to make an offer to the Islamic republic offering trade and other incentives in return for guarantees over its nuclear programme.

"The offer we are going to do in the coming weeks will prove really if they say yes, that they are serious," he told foreign affairs and defence committee lawmakers at the European Parliament in Brussels.

"If they reject (it), it will be once again a clear sign (that) what they are looking (for) is not only the production of energy, but they are looking for a level (of) enrichment going way beyond."

The United States suspects Iran is trying to acquire nuclear weapons, and the European powers view a freeze of enrichment as the best "objective guarantee" that Iran will not do so.

But Iran insists it only wants to make civilian reactor fuel and that enrichment is a right enshrined by the nuclear Non-Proliferation Treaty.

Solana added that a meeting later this week of the permanent members of the UN Security Council will try to "finalize a resolution and finalize also the package that we will have to see how it is perceived (by) the Iranian leaders."

Iran said Tuesday it will study the European proposals to end the dispute over its nuclear programmes, but reiterated its refusal to halt sensitive uranium enrichment work.

The five UN Security Council permament members -- the United States, Russia, France, Britain and China -- are to meet Thursday in Vienna, along with Germany, to discuss how to proceed with Iran, China confirmed Tuesday.

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