"This is not the right moment for sanctions," Zhang Yesui, who chairs the UN Security Council this month, told reporters.

He stressed that current diplomatic efforts to find a peaceful settlement "still need some more time and patience," echoing a view expressed by the Chinese foreign ministry in Beijing.

Zhang said sanctions themselves "are not an end" and a diplomatic solution "would be the best option."

In Beijing, foreign ministry spokesman Jiang Yu meanwhile told reporters: "We believe that dialogue and negotiation are the proper way to resolve the Iran nuclear issue."

"We still have room for diplomatic efforts and we hope all parties will adopt more flexible and pragmatic policies to enhance the diplomatic efforts so as to promote an early resumption of talks," he added.

The Chinese statements came after the United States on Monday said "the door is still open" for Iran to meet world demands on its nuclear aims, but warned it was discussing with its allies the "next steps," which could include sanctions.

Tehran has dismissed a US-set deadline of December 31 to agree to a UN-brokered nuclear fuel swap deal and instead issued the West a one-month "ultimatum" expiring January 31 to accept a counter-proposal.

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