The draft, drawn up by Britain, Germany and France, asks both the UN nuclear watchdog to verify Tehran's compliance and its chief Mohamed ElBaradei "to provide a comprehensive report on the implementation of Iran's NPT (Non-Proliferation Treaty) Safeguards Agreement and this resolution by 3 September 2005."

The draft did not say Iran should be referred to the UN Security Council, which has the power to impose sanctions.

The European Union is sponsoring the resolution which will be voted on later on Thursday at an emergency session of the International Atomic Energy Agency's (IAEA) board of governors.

The resolution "urges Iran to re-establish full suspension of all enrichment related activities ... and to permit the Director General to reinstate the seals that have been removed at (Isfahan)."

EU diplomats said that if Iran did not comply with the resolution, they would ask the board to refer the matter to the Security Council in September.

Defiant Iran

Iran resumed activities at the Isfahan uranium processing plant on Monday.

Despite US and EU calls that Iran should not resume work there, Tehran on Wednesday broke all the UN seals and made the facility fully operational.

The draft said "outstanding issues relating to Iran's nuclear programme have yet to be resolved and ... the Agency is not yet in a position to conclude that there are no undeclared activities in Iran."

One European diplomat described the draft as "harsh enough to satisfy the Americans but something the developing countries can live with."

He said it was possible the IAEA's 35-nation board would vote on the resolution rather than adopting it without a vote by consensus."We can win the vote but we'd prefer consensus," he said.