The Chinese government believed the international non-proliferation system should be maintained and the Iran issue be resolved in a peaceful way through diplomatic means and talks, Hu said in a telephone conversation with Bush Thursday night.

"China is ready to maintain contact and coordination with the United States and play a constructive role in resuming negotiations at an early date," a statement from the Chinese Foreign Ministry quoted Hu as saying.

Bush told Hu that his country was determined to resolve the Iran nuclear issue through diplomatic means.

He said as long as Iran agreed to suspend its uranium enrichment activities in verifiable ways, the United States would join relevant negotiations.

The Iran nuclear issue is reaching a critical stage.

Earlier on Thursday, Iranian Minister of Foreign Affairs Manouchehr Mottaki told reporters in Teheran that Iran welcomed direct talks with Washington, but would not give up its nuclear rights.

Senior representatives from the five permanent members of the United Nations Security Council and Germany were to meet in Viennaon Thursday to discuss the issue, China's Foreign Ministry said earlier.

Chinese Vice-Foreign Minister Dai Bingguo would attend the meeting, which was expected to focus on a decision to offer Iran apackage of incentives in return for suspension of its nuclear activities.

The six nations achieved some progress in forming a common position at a meeting in London last Wednesday.

Meanwhile, France, Germany and Britain, or the EU-3, have been trying to work out a package of both incentives and possible penalties to persuade Iran to suspend its nuclear programs.

Mottaki said in Malaysia on Tuesday that Iran was ready to restart negotiations with the three European countries.

Hu also told Bush he was ready to work with Bush to advance bilateral relations in a healthy and stable way.

Hu said during his visit to the United States in April, he and Bush reached an important consensus on promoting bilateral constructive and cooperative relations in the 21st Century.

"This is of great significance to the development of relations between China and the United States," Hu said.

Bush said it was important for both leaders to exchange ideas on strategic cooperation through such ways as telephone conversations.

Calling Hu's visit to the United States a success, Bush said hewas looking forward to meeting Hu again to exchange opinions on bilateral ties.

Hu paid his first state visit to the United States from April 18 to 21 this year. Bush's last visit to Beijing was in November 2005.