A statement due to be issued by EU leaders at a summit in Brussels said “The European Council reaffirms its grave concern over the development of Iran's nuclear programme and Iran's persistent failure to meet its international obligations.”
"The European Council also calls upon Iran to agree with the IAEA to the scheme of nuclear fuel supply for the Tehran research reactor, which would contribute to building confidence while responding to Iran's need for medical radio-isotopes," said the statement, which was obtained by news agencies.
"Progress … would pave the way for enhanced relations between the EU and Iran and open the way to mutually beneficial cooperation in the political, economic, security and technical fields."
It said the Council of EU leaders would "decide in the context of the dual-track approach on our next steps".
The EU statement came after Western diplomats said this week that Iranian regime had rejected a plan proposed by International Atomic Energy Agency chief Mohamed ElBaradei at talks involving Iran, the U.S., Russia and France.
The deal would involve Iranian regime sending potential nuclear fuel abroad for processing to allay Western concerns that it is trying to develop nuclear weapons.