Wednesday, January 4 2006 10:36 Hrs (IST) - World Time -

Tehran: Iran has announced it would resume nuclear fuel research after a suspension of over two years, prompting the UN atomic watchdog to warn Tehran that it must maintain a freeze on sensitive nuclear work.

President Mahmoud Ahmadinejad said yesterday that Iran would not 'step back' on its decision to resume nuclear fuel work, state television reported.

"Our country will go forward on the nuclear path with patience, wisdom and planning", the hardline president was quoted as saying after a parliament session on the budget.

"We will not make a step back on our path," he said, adding that he had informed the UN atomic agency in a letter.

Iran's student-run news agency ISNA further quoted Ahmadinejad as rejecting Western influence on Iranian policies because 'research has no restrictions or red lines'.

"We cannot base our national interest on their policy", he said.

The deputy head of Iran's atomic energy agency, Mohammad Saidi, did not specify exactly what the research concerned, but said that the Islamic republic had 'voluntarily' suspended such activities for around 'the past two-and-a-half years'.

In a statement confirming receipt of the letter, the IAEA said its director general Mohammed ElBaradei "recalls the importance placed by the IAEA Board that Iran maintains its suspension of all enrichment-related activity as a key confidence building measure".

It said, "He continues to call on Iran to take the steps the IAEA requires to resolve outstanding issues regarding the nature of Iran's nuclear programme".