Iran's Atomic Energy Agency has proposed that France create a consortium to produce enriched uranium on Iranian soil, so that France can monitor its nuclear activities.
The deputy director of the Iranian nuclear body, Mohammad Saeedi, of has made the proposal on a French radio program.
Iran has ignored an August 31 deadline set by the UN Security Council for halting enrichment.
Earlier this year, Tehran rejected a Russian scheme, to allow Iran to enrich uranium on Russian soil as a way out of the standoff.
Western nations suspect that Iran’s nuclear program could lead to the country making nuclear bombs.
Iran says its nuclear activities are aimed purely at civilian electricity generation.
Sanctions threat
US Secretary of State Condoleezza Rice said the international community will have no choice but to impose sanctions on Iran, if it fails to suspend uranium enrichment.
Speaking in Saudi Arabia at the beginning of a tour of Middle East countries, Ms Rice has reiterated that Washington has no indication that Iran intends to suspend enrichment.
She says the five permanent members of the United Nations Security Council plus Germany will consult soon about Iran.