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Iran's foreign minister has said that Tehran is still interested in a UN-drafted nuclear fuel swap swap, despite little apparent progress on the proposal at a meeting with the head of the International Atomic Energy Agency (IAEA).

"The nuclear fuel swap proposal is still on the table," Iran's Press TV quoted Manouchehr Mottaki as saying after talks with Yukiya Amano, the IAEA director in Vienna.

"Iran's acceptance of the deal will prove the country's goodwill and political will."

The proposal would see Iran send its stock of low-enriched uranium to Russia and France for conversion into fuel for a research reactor in Tehran.

But it has run into deadlock after Tehran called for a simultaneous exchange of nuclear fuel to take place within its borders.

A spokeswoman for the IAEA confirmed that Mottaki and Amano had discussed the fuel deal and "exchanged views on the possible modalities for its realisation".

Restoring confidence

Mottaki also held talks with his Austrian counterpart, Michael Spindelegger, amid efforts to halt a new round of sanctions against Tehran over its disputed nuclear programme.