Officials from the United States and Britain are warning that Iran may soon face sanctions if it continues to enrich uranium.

Secretary of State Condoleezza Rice told reporters in Cairo Tuesday time is running out and she warned that if Iran continues to enrich uranium, the next step will be sanctions.

A senior British official, who asked not to be identified, told media outlets in London that preparations are already under way to draft a Security Council resolution that will impose sanctions on Iran.

Meanwhile, Tehran is pushing a new proposal that France create a consortium to enrich uranium in Iran. French officials, however, have distanced themselves from the idea and are urging Iran to suspend enrichment.

Major world powers believe Iran is working to develop nuclear weapons. Iran insists its nuclear program is for peaceful purposes.

Tehran has defied an August 31 deadline to stop enriching uranium.

While France seemed to reject Iran's proposal, European Union foreign policy chief Javier Solana called the idea interesting. However, he said it requires further analysis.

Solana said his latest telephone conversations with Iranian nuclear negotiator Ali Larijani were "constructive" but yielded no breakthrough.

The head of Russia's Security Council, Igor Ivanov, is holding talks with Larijani in Tehran Tuesday.

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