Iran is prepared to resume negotiations on its nuclear program, Foreign Minister Manouchehr Mottaki said in the Malaysian capital of Kuala Lumpur today.

Mottaki said a European Union-led offer of incentives which includes the lifting of some U.S. sanctions as well as access to light-water nuclear reactors is "one step further and a positive step."

Iran is "ready for a resumption of negotiations," Mottaki said after meetings with counterparts from countries including Malaysia, Bangladesh, Indonesia, and Pakistan. "All the questions and concerns and all the items in the package can be included in the negotiations," he told reporters at the Association of Southeast Asian Nations meeting in Malaysia.

The United Nations Security Council has begun discussing a resolution which may include economic sanctions after Iran didn't respond to the EU offer of incentives in return for the Islamic Republic giving up uranium enrichment. Iran is still studying the June 6 proposal, Mottaki said. Iran has said it will reply by Aug. 22.

The U.S. suspects Iran is enriching uranium for use in a nuclear weapon in breach of the Non-Proliferation treaty. Iran, holder of the world's second-largest reserves of oil and natural gas, says its uranium enrichment program is for power generation only.

To contact the reporter on this story: Soraya Permatasari in Kuala Lumpur at (60)(3) 2160-6805 or sorayabloomberg.net

To contact the editor responsible for this story: Adrian Kennedy at (65) 6212-1513 or adkennedybloomberg.net.