Iran rejects EU nuclear offer

"The proposals are unacceptable," nuclear negotiator Hossein Moussavian said, describing them as a "clear violation" of agreements between Iran and the European Union.

"They negate Iran's inalienable right," he said.

EU negotiators have called for a emergency meeting of the UN watchdog, the International Atomic Energy Agency, which could refer Iran's nuclear dossier to the Security Council for possible sanctions.

But a defiant Iran said it would also stick by its plans to resume uranium conversion, a preliminary stage in the nuclear fuel cycle, despite warnings that it would trigger an international crisis.

The European Union said Tehran, accused by arch-enemy the United States of seeking to build an atomic bomb, must commit "not to pursue fuel cycle activities" if it wants to benefit from the EU incentives.

The package, submitted by ambassadors from Britain, France and Germany, covers nuclear issues, political and security concerns, and offers economic and technological cooperation for Iran to give up uranium enrichment work.

It follows nine months of tortous negotiations between the so-called EU-3 and Iran, which in November agreed to suspend enrichment and conversion work for the duration of the talks.

The processes make fuel which can be used for reactors or the explosive core of atom bombs.

The offer comes just days after Iran's new ultra-conservative President Mahmood Ahmadinejad took office, raising international concerns about the future policies of the Islamic republic.

French foreign ministry spokeswoman Cecile Pozzo di Borgo said the EU recognises "the inalienable right of Iran to the peaceful use of nuclear energy in conformity with the NPT and within the framework of a global accord."