A senior Iranian official Sunday denied a report which said Tehran would welcome Senator John Kerry's proposal for a 'great bargain' to solve dispute over Iran's nuclear program, IRNA reported from Tehran.

"US presidential candidate John Kerry's proposal is part of his electoral campaigning and we are not interested in being drawn into such issues," head of the foreign policy committee at Iran's Supreme National Security Council Hossein Mousavian said.

Reuters news agency had quoted him as having welcomed the proposal, virtually made by vice presidential candidate Senator John Edwards.

Edwards had said that Kerry would be willing to supply Iran with nuclear fuel for power generation if Tehran abandons its own fuel-making capability and if Iran did not accept this offer, it would confirm Iran wanted to make an atom bomb.

In a fax sent to IRNA, Mousavian said, "Reuters news agency has filed a news as if I had welcomed Kerry's proposal.

"But we are rejecting direct negotiations with Washington about Iran's nuclear program because of the United States' antagonistic policies."

Washington accuses Tehran of trying to make atomic bombs, a charge which Iran strongly denies, stressing that its nuclear program is directed at electricity generation.

The United States is also campaigning to report Iran to the UN Security Council for possible sanctions.

Last month, the Europeans opposed Washington's demand to set an October 31 ultimatum for Tehran to fully suspend uranium enrichment or report Iran to the UN Security Council for possible sanctions.

Mousavian recounted US animosity towards the Islamic Republic, including Washington's support for the former regime of Saddam Hussein during the 1980-1988 war between the two neighbors.

The official stressed that 'the Islamic Republic of Iran will consider any constructive American proposal for recognizing Iran's legitimate right to peaceful nuclear technology, including fuel cycle'.

"Iran, as a member of the nuclear non-proliferation treaty (NPT), must be allowed to pursue its peaceful nuclear program and its legitimate right of having access to peaceful nuclear technology must be respected," Mousavian said.

The official stressed that Tehran was ready to suspend uranium enrichment in order to build confidence, but rejected to halt such activities for good.

"Iran is ready to build trust so that its uranium enrichment activities remain peaceful, but we do not agree to halting uranium enrichment (for good)," he said.

"We do not reject suspension of uranium enrichment for confidence building, provided that Iran's full right to nuclear fuel cycle is recognized," Mousavian added.

The IAEA Board of Governors approved a resolution last month, setting a November 25 deadline for a full review of Iran's nuclear program and calling on Tehran to 'immediately' suspend all uranium enrichment activities.

Mousavian reiterated Iran's rejection of the resolution, saying the country would only consider it 'in the framework of political understanding'.

"We do not accept any request for suspension of uranium enrichment in the framework of the IAEA treaties, since uranium enrichment is legitimate according to the agency's laws and the resolution has gone beyond them," he said.

Iran has already dismissed the world nuclear watchdog's demand to freeze uranium enrichment, saying the country does not accept any obligation in this respect.

"Any resolution which seeks to bind us to suspension (of uranium enrichment) is unacceptable and we will not accept such an obligation," Hassan Rowhani, who is secretary of the Supreme National Security Council, has said.

"The Islamic Republic has never accepted the suspension under a resolution, thus the country cannot be obliged on that and Iran can only be asked through negotiations to (continue) the suspension," he said after the IAEA adopted its resolution on Sept 18.