The council's five permanent members, Britain, China, France, Russia and the United States, held an informal session with their 10 non-permanent colleagues to discuss elements of a Franco-British draft text on the issue.
Diplomats said council members agreed to meet again informally on Thursday and formally on Friday.
The text, among other things, calls on Iran to comply with demands set by the International Atomic Energy Agency (IAEA), including restoring full and sustained suspension of all enrichment-related and reprocessing activities.
Iran will also be asked "to take the steps needed to begin building confidence in establishing the exclusively peaceful purpose of its nuclear program."
The text also calls on IAEA head Mohamed ElBaradei to report "to the Security Council in 14 days on Iranian compliance with the requirements set out by the IAEA Board".
The draft also presses Iran to promptly "ratify and implement in full" the nuclear Non-Proliferation Treaty's Additional Protocol, which allows for wider IAEA inspections of a country's nuclear facilities.
Iran said last month it would suspend the voluntary implementation of
Additional Protocol in retaliation for being reported by the IAEA to the Security Council over its disputed atomic program.
Tehran insists that its nuclear program is solely aimed at generating electricity and that it has a right as a signatory to the Non-Proliferation Treaty to conduct uranium enrichment.