Iran's Supreme Leader, Ayatollah Ali Khamenei, has said his country has decided to press ahead with its pursuit of nuclear energy, indicating that it will not heed a UN demand to stop uranium enrichment.
The move is a key demand of an international proposal aimed at resolving the row over Iran's nuclear programme.
Earlier, an official said Iran would give its response tomorrow to the package, however he warned that a halt to uranium enrichment was 'not on the agenda'.
The proposal, backed by Germany as well as the five permanent UNSC members, offers Tehran incentives in return for a freeze of sensitive nuclear work.
Iran, a major oil producer and a member of OPEC, has repeatedly said its nuclear program is purely to generate electricity, but the US and other Western powers have accused Iran of pursuing a nuclear weapons programme.
UN Secretary General Kofi Annan appealed yesterday for Iran to reply positively to the UNSC incentives package, appealing to the Iranian government to seize what he described as an historic opportunity.
IAEA chief Mohammed El-Baradei is to report on Iran's compliance and if it is deemed to have failed to meet the UN demands, the UNSC will consider adopting 'appropriate measures'.
