Tehran today welcomed a reported proposal made by the head of the International Atomic Energy Agency (IAEA) to allow for small-scale uranium-enrichment activities on Iranian territory under certain conditions.

Iran's official IRNA news agency quotes Foreign Minister Manouchehr Mottaki as saying that Tehran sees Muhammad el-Baradei's proposal as "a step forward."

Mottaki also said Tehran is ready to continue talks in a bid to allay international concerns that it may seek to develop nuclear weapons.

IRNA says Mottaki made the remarks at a meeting of the Iran-Tunisia economic commission.

Reports say el-Baradei recently suggested that Iran could be allowed to operate a pilot enrichment plant while giving guarantees it would not conduct industrial-scale enrichment.

Negotiations between Iran and international community collapsed last month after Tehran said it was resuming its enrichment program.

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