"We can not retreat. The proposal should provide ways to secure our rights. We will not stop enrichment," Asefi told a weekly press briefing.

"The basis of our work is that Iran's rights must be recognized in any plan," Asefi stressed.

In a bid to break the present deadlock over Iran's nuclear plan, the European trio -- Britain, France and Germany -- is preparing a package of incentives, giving Tehran a series of trade, technology and security benefits in return for its agreeing to stop enriching uranium.

The United States has accused Iran of using an atomic energy program as a cover for developing atomic weapons.

But Iran says its uranium enrichment is only aimed at making fuel for nuclear reactors, and it is Tehran's legal rights to conduct such an activity according to the Non-Proliferation Treaty.

A draft proposal by the EU trio, among others, gives green lights for Iran to build light water reactors and set up a nuclear fuel bank that would guarantee the country access to reactor fuel but not the sensitive fuel cycle technology.

But the EU trio says that if Tehran does not accept the proposal, sanctions should follow, which could include an arms embargo, political and economic measures, a visa and travel ban on selected high-ranking officials and a freeze of assets of individuals and organizations.

Referring to the draft proposal, Asefi repeated Iran's warning that any economic sanction would leave its foreign trading partners worse off.

"We have broad trade and economic ties with European and non-European countries. These ties can be damaged and this damage will harm European countries even more," he said.

He also said it would be "hasty to comment on a raw proposal that has been brought up in the media, and still neither officially nor unofficially given to us."