President Mahmoud Ahmadinejad says Iran is ready to send low enriched uranium abroad in exchange for higher grade nuclear fuel.
This is in line with a proposal by the United Nations last year.
President Ahmadinejad told state television that Iran is prepared to send 3.5% enriched material in return for 20% enriched fuel.
The BBC reports he said Iran would have "no problem" if most of its stock was held for several months before being returned as fuel rods.
Last month, diplomats said Iran had informed the International Atomic Energy Agency that it did not accept the terms of the deal and instead demanded a simultaneous exchange on its territory.
Western powers fear Iran is attempting to develop nuclear weapons. Iran insists its nuclear programme is entirely peaceful.
A deal agreed in October between Iran, the IAEA and Britain, China, France, Russia and the United States, plus Germany, envisaged Iran sending about 70% of its low-enriched uranium to Russia and France, where it would be processed into fuel for a research reactor.
But for months, Iranian officials publicly criticised the terms and said they were unwilling to export the uranium without simultaneously receiving fuel in return. This proposal was unacceptable to the West.
