Iran may withdraw a counter-offer it made to the International Atomic Energy Agency in response to proposals from the major powers for the supply of nuclear fuel, its IAEA envoy said Thursday.

"Iran's proposal for a simultaneous exchange on Iranian soil of our low enriched uranium for fuel enriched to 20% is still on the table but it will not stay there forever," Ali Asghar Soltanieh said, quoted by Mehr news agency.

His words echoed similar warnings of a time-limit from the major powers.

"Any development which might disturb the climate of cooperation" would prompt Iran to withdraw the offer, he said, alluding to the threat of new sanctions being leveled by Western governments with Russian support.

Last October, the IAEA drew up a plan for Iran to ship out most of its stockpiles of low enriched uranium in return for the supply by France and Russia of uranium enriched to the 20% level required for a Tehran medical research reactor.

Iran baulked at the stipulation that it ship out the uranium before receiving any fuel and last month started enriching uranium to 20% itself.

The move, launched before the IAEA could install monitoring equipment, angered the European Union and the U.S., which Wednesday began intense lobbying for tough new United Nations sanctions.

For Western governments worried that Iran may otherwise covertly enrich some of the stocks to weapons grade, the requirement to ship out most of Iran's stockpiles before receiving any fuel is the main element of the IAEA plan.

U.S. Secretary of State Hillary Clinton said Wednesday it was vital that a fourth round of U.N. sanctions be enforced to apply pressure on Iran to accept the IAEA plan.

"Only after we pass sanctions in the Security Council will Iran negotiate in good faith," she said.

But veto-wielding U.N. Security Council member China has been holding out, insisting the diplomatic path should be pursued, and Clinton acknowledged this week that it might take months before a new round of sanctions is agreed.

Brazil, a current member of the Security Council but without veto power, too has thrown its weight against sanctions.

Before a meeting in Brasilia with Clinton Wednesday, President Luiz Inacio Lula da Silva warned the international community not to "push Iran into a corner."

"Peace in the world does not mean isolating someone," said Lula, whose country has its own nuclear energy program.

Iran strongly denies Western suggestions that its nuclear program is cover for a drive to build an atomic bomb.