VIENNA - Iran is ready to consider suspending uranium enrichment for up to two months, diplomats said Sunday.

The diplomats, who demanded anonymity, spoke shortly after talks between senior Iranian and EU negotiators focusing on Tehran's defiance of a UN Security Council resolution demanding suspension of the activity, which can be misused to make nuclear arms.

The diplomats were familiar with the substance of the discussions. One of them said Larijani floated the possibility of Iran stopping its enrichment activities "voluntarily, for one or two months, if presented ... in such a way that it does it without pressure."

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The diplomats did not say when such a contemplated move was planned.

Such a concession would be a major departure by Iran, which is under threat of possible UN sanctions for its defiance of a Security Council order that it cease all enrichment activities, a possible pathway to nuclear weapons.

Earlier, both Larijani and Solana spoke of progress and agreed to meet again later this week.

The weekend talks in Vienna, which ran seven hours, had been regarded as a last chance to explore a face-saving compromise before possible punitive action after Iran ignored an August 31 Security Council deadline to stop enriching uranium.

"The meetings ... have been productive. We clarified some of the misunderstandings we had before" about Iran's 21-page reply to six world powers' offer of trade inducements to halt nuclear fuel work, the European Union's Javier Solana told reporters.

"We have made progress and we want to continue in that line and for that purpose we are going to meet again next week. These (talks) have been worth it," he said. An EU diplomat said Solana meant another meeting later this week, most likely on Thursday.

Iran's top nuclear negotiator Ali Larijani, standing beside Solana, said: "We have made constructive progress. We reached common points of view on a number of issues. And as mentioned by Dr Solana, many of the misunderstandings were removed. Our meetings will continue."

Solana consulted with foreign ministers of the six powers by phone during the talks and would brief them on the results before they hold a conference call on Monday to discuss what to do next, EU diplomats said.

"The tone of (the talks shows) that both sides are working to be able to create the conditions for negotiations to start. The atmospherics were positive, (unlike) the July 11 meeting which we characterised as difficult," said one EU diplomat.

Both sides declined to elaborate on the progress made, but an EU diplomat said earlier the crucial issue of timing for a suspension of uranium enrichment was addressed at the talks.

Solana had wanted to pin down Larijani on hints in Tehran's meandering response to the incentives package that it could curb enrichment as part of negotiations to implement the offer.