Iranian President Mahmoud Ahmadinejad met Greek Prime Minister George Papandreou in New York , his website said Wednesday, boasting a crack in Europe 's strained relations with Tehran .

"Iran sees no limitations and obstacles to the expansion of ties and cooperation between the two countries," the president.ir website quoted Ahmadinejad as telling Papandreou at Monday's meeting.

"Palestine is the world's number one issue. It is about time the United States and some Western governments correct their past positions on Palestine and recognize some rights for the Palestinians to resolve the problems," Ahmadinejad said.

Ahmadinejad is in New York with other world leaders for the U.N. General Assembly.

" Greece welcomes the expansion of bilateral and regional ties with Iran ," Papandreou was quoted as saying.

The European Union has had increasingly strained relations with Iran over its controversial nuclear program, which Western governments fear is cover for a drive for an atomic weapon, an ambition Tehran denies.

The bloc adopted tough sanctions of its own against Tehran earlier this year, over and above the four sets of punitive measures imposed by the United Nations.

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