International Atomic Energy Agency chief Mohammed ElBaradei called on Monday for "long-overdue" negotiations on Iran's nuclear work, launching an IAEA meeting focused on efforts to stem the spread of volatile nuclear know-how.

Convened with world powers about to consider UN sanctions if last-gasp EU-Iran dialogue fails, the meeting will examine how best to assure a global atomic fuel supply for development while minimising risks of diversions to bomb making.

Meanwhile, Gholamreza Aghazadeh, head of the Atomic Energy Organization of Iran, repeated Tehran's denial of having anything but peaceful goals and call for negotiations without preconditions in search of compromise.

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The UN nuclear watchdog's annual General Conference of 140 member states will also see another Arab demand for a Middle East nuclear-free zone given resentment at Western pressure on Iran while Israel's presumed atomic arsenal will not be discussed.

Concern about proliferation of uranium-enrichment technology able to yield both electricity or bombs has risen amid Iran's record of hiding nuclear work and defiance of a UN deadline last month to suspend its activity.

ElBaradei fears sanctions could spur Iran to expel the agency's inspectors and he pressed world powers to do their utmost for a negotiated deal.

"I remain hopeful that through the ongoing dialogue between Iran and its European and other partners, the conditions will be created to engage in long overdue negotiations...," he said in a speech opening the weeklong gathering in Vienna.

"(The) aim (should be) ... a comprehensive settlement that on the one hand will address international concerns about the peaceful nature of Iran's program while on the other hand addressing Iran's political, economic and security concerns."

He said preventing enrichment technology from falling into hands that could turn it to weaponization was a growing concern given more than 100 incidents of nuclear smuggling exposed annually in recent years.

The United States and five other powers demand Iran suspend enrichment work before negotiations to implement their offer of trade incentives not to pursue sensitive activity.

Iran rejects such a concession in advance, calling it humiliating and unjustified.

The meeting's highlight will be a debate starting Tuesday on proposals for a global nuclear fuel bank assuring access to enriched uranium for states seeking atomic energy if they do not try to master enrichment technology at home.

"I want to make sure that every country that is a bona fide user of nuclear energy and is fulfilling its non-proliferation obligations is getting fuel," ElBaradei said before the meeting.

But diplomats said a joint proposal by the United States, Russia, Britain, Germany, France and the Netherlands that would effectively control nuclear fuel supply had run aground because of widespread perceptions it is discriminatory.

Six nations - Australia, Canada, Ukraine, South Africa, Kazakhstan and Argentina - less supportive of the U.S.-led plan have since raised the prospect of enriching uranium themselves.

"The fact multiple countries have announced they will consider their own programs is the perverse result of the precondition attached by the U.S., Russia and other would-be providers," said a senior IAEA diplomat.

Ahmadinejad: We are opposed to nuclear weapons
Iranian President Mahmoud Ahmadinejad has said in remarks published Sunday that he opposes the proliferation of nuclear weapons and that Tehran and Washington were not fated to end up in a military conflict with one another.

In an interview with Time Magazine Ahmadinejad said "We are opposed to nuclear weapons. We think it has been developed just to kill human beings. It is not in the service of human beings."

"Today nuclear weapons are a blunt instrument ... The Zionist regime is not capable of using nuclear weapons. Problems cannot be solved through bombs. Bombs are of little use today" he added.

Ahmadinejad said that Tehran and Washington were not fated to end up in a military confrontation so long as the U.S. did not interfere in Iranian affairs.

"They should live their own lives. They should serve the interests of the U.S. people. They should not interfere in our affairs. Then there would be no problems with that," he said.

Ahamdinejad cited his call on the UN General Assembly last year to establish a committee for disarming all countries with nuclear weapon capabilities.

When asked about Iran's strained relations with the U.S., the Iranian president said "Why more conflict? Why should we go for hostilities? Why should we develop weapons of mass destruction? Everybody can love one another."

In reply to what he thought Americans feel when hearing Iranians shouting "Death to America," Ahmadinejad said that Iran and the U.S. "do not have any problems [with one another] ... The people of the United States are also seeking peace, love, friendship and justice."