Iranian President Mahmoud Ahmadinejad has agreed "in principle" to Brazil's mediation over a stalled UN-backed nuclear fuel deal, the semi-official Fars news agency said on Wednesday.

"In a telephone conversation with his Venezuelan counterpart, Ahmadinejad agreed in principle to Brazil's mediation over the nuclear fuel deal," Fars said, quoting a statement issued by Ahmadinejad's office.

The deal offered Iran last October was to ship 1,200 kg (2,646 lb) of its LEU -- enough for a single bomb if purified to a high enough level -- to Russia and France to make into fuel for the Tehran Research Reactor.

Iran later said it would only swap its LEU for higher grade material and only inside its soil, conditions other parties in the deal said were unacceptable.   

The United States is pushing UN Security Council members, to back a fourth round of international sanctions on Iran in the coming weeks, to coerce it to curb nuclear activities. Iran says its nuclear programme is aimed at generating power.

Some non-permanent UN Security Council members such as Brazil and Turkey are trying to revive the stalled deal with Iran in an attempt to help the Islamic Republic avoid new UN sanctions. - Reuters