Downing Street has welcomed an announcement from Iran that it is suspending its nuclear programme.

The Tehran administration said on state television on Monday that it is ceasing its uranium enrichment development in line with international demands to curb its weapons ambitions.

Britain, France and Germany have been at the forefront of efforts to persuade Iran to step down and had set this week as a deadline for compliance.

With Washington adopting a tougher stance and the threat of military action being debated in the US, the pressure was on the Tehran regime to avoid the issue being taken to the UN security council.

International Atomic Energy Agency inspectors will now seek to verify the claims.

But Number 10 said, while it waited for signs that the promise would be fulfilled, events were at least moving in the right direction.

"Clearly the important thing is that Iran is showing signs of compliance," the prime minister's official spokesman said.

"But equally importantly is that it is implemented. That is what will determine where we are in the process."

Military action

However Tony Blair was not considering the use of troops or air strikes to enforce the international community's will, Downing Street insisted.

"He is not aware of any discussion in which military action has been discussed," the spokesman said.

And the foreign secretary added that the UN route had not been ruled out.

"If there is a failure by Iran to meet its obligations then Britain and also Germany and France reserve our collective right to refer the matter to the security council," Jack Straw said.

Straw was speaking from Egypt where he was attending an international meeting on supporting elections in Iraq.

The two day event, which was taking place in the Sharm el-Sheik resort, was also attended by representatives of the Iranian government.

Britain is resisting pressure from the Arab League and others to set a clear timetable for the withdrawal of its troops from the region.