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Traces of nuclear material could indicate drive to produce weapons, as diplomats give details of report to be released.
IAEA also says Tehran failed to address possible undisclosed nuclear activities.
US and allies threaten sanctions as production of higher-grade nuclear fuel starts.
Satellite images show a suspected nuclear reactor bombed by Israel has been razed.
The US government says it is mulling all its options - including the military one - in response to an IAEA report that Iran has begun enriching uranium on a small scale and is slowly building up its enrichment capabilities.
Adla Massoud in New York

Iran could have an atomic bomb as early as 2009 and could eventually manufacture 25 to 30 weapons a year based on its past research efforts, two

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Western fighters have streamed into the Middle East to help 'liberate' Arab countries such as Syria and Libya.
The Pakistani government is proposing reform of the nation's madrassas, which are accused of fostering terrorism.
Weaving and handicrafts are being re-taught to a younger generation of Iraqi Kurds, but not without challenges.
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
 
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Three years since the start of the uprising, nine million people have been displaced by fighting.
An in-depth look at Egypt's ongoing political crisis.