Some IAEA diplomats told reporters that ElBaradei would reflect in the report that no evidence had been found to substantiate Iran was attempting to develop nuclear arms.
The diplomats say that the report would however term inconsistency of fuel cycle with other sectors of the nuclear program.
They quoted ElBaradei as assuring Iranians that he would be able to present positive report on Iran if their talks with the EU prove constructive.
Iranian and European 'Big 3' envoys are to hold their third meeting in Paris and find ways for an agreement.
The first and second round of the meeting had been held in Vienna, Austria, two weeks ago.
The diplomats stressed that acknowledgement to the point that there is no solid and concrete evidence to substantiate Iran's diversion to production of nuclear weapons would drop an important legal justification for reference of the dossier to the UN Security Council.
The Islamic Republic of Iran has signed additional protocol to Non-Proliferation Treaty (NPT) and has put all its nuclear sites open to the IAEA inspectors.
The European negotiators have offered to supply Iran with fuel, but, Iran does not see import of fuel economical while it has established full fuel cycle under the IAEA safeguards.
Furthermore, in response to the European Union's demand for suspension of the uranium enrichment program, Iran has announced that it will not relinquish its right recognized by the international convention (NPT).
Iranian officials further maintain that they will suspend voluntarily the uranium enrichment program to build confidence with the international community.
... Payvand News - 11/4/04 ... --