Mahmoud Ahmadinejad, the Iranian president, has said that his government is ready to send the bulk of its low-enriched uranium abroad for processing in exchange for nuclear fuel rods.
In an interview with Iranian state television, he also said that Tehran has the capacity to enrich its own uranium if the shipped supply is not returned.
Last year Tehran in effect turned down the proposal to hand over its uranium supply in exchange for nuclear fuel.
The US says Iran should inform the International Atomic Energy Agency if it is ready to now take the deal.