Mahmoud Ahmadinejad during news conference in Putrajaya, Malaysia, August 3, 2006

Iranian President Mahmoud Ahmadinejad says Iran is still considering an international package of incentives to suspend sensitive nuclear activities.

Mr. Ahmadinejad said Thursday he is open to negotiations to settle the nuclear dispute. His comments came on the sidelines of a summit of Muslim leaders in Malaysia.

The United Nations Security Council has demanded that Iran suspend uranium enrichment by the end of the month or face possible sanctions. The council acted after Iran failed to respond to the international offer of incentives if Tehran suspended enrichment activities.

In comments earlier this week, Mr. Ahmadinejad rejected the U.N. resolution, saying Iran would not give up what he called its right to a peaceful nuclear program.

The United States and its Western allies believe Iran is trying to develop nuclear weapons. Tehran says its nuclear program is for peaceful purposes only.

Some information for this report was provided by AP and Reuters.