Accusing Iran of failing to take any steps to assuage fears over its nuclear activities, Gates said Tehran should respond quickly to the proposal by the International Atomic Energy Agency (IAEA) or face renewed pressure.

"I don't have the sense we are close to an agreement," Gates told reporters in Ankara following bilateral talks with Turkish leaders.

"If Iran has decided to accept the proposal of the P5-plus-one, they should do that to the IAEA", (the International Atomic Energy Agency), he added, referring to the five permanent members of the UN Security Council and Germany.

On Friday, Iranian Foreign Minister Manouchehr Mottaki told the Munich Security conference in Germany that Tehran was "serious" about sending some uranium abroad for enrichment and that a final deal was near.

His remarks came after Iranian President Mahmoud Ahmadinejad's announcement Tuesday that Tehran might be ready to accept an offer to send some uranium abroad for enrichment.

Iran needs nuclear fuel to power its UN-monitored reactor but the West fears its uranium enrichment programme is masking efforts to produce atomic weapons -- claims vehemently denied by the Islamic republic.

In a bid to allay Western concerns, the IAEA made a proposal from the P5-plus-one group of countries that Tehran ship out its low-enriched uranium (LEU) to Russia and France to be further purified into reactor fuel.

Iran, which agreed in principle to the offer during talks with world powers in Geneva in October, later appeared to reject the deal and said it preferred a gradual swap of LEU with fuel -- preferably on Iranian soil.

Following Ahmadinejad's announcement, western power have urged Iran to formally commit to the deal, suspecting of a ploy to escape a fourth round of UN sanctions.

"Now I hear they're offering some kind of other deal on the research reactor. My view is, that's a discussion that the Iranians would better hold with the IAEA than at the Munich conference or in press conferences by president Ahmadenijad if they are prepared to take up the original proposal," Gates said.

He added that Iran should not waste time in accepting the proposal if it was serious.

"There is more and more low enriched uranium produced. So if they are willing to accept the P5-plus-one proposal, it logically dictates that it should be as soon as possible," the US Secretary said.

"The reality is, the longer that this goes on and the longer they continue to enrich, the value of the Tehran research proposal as a reassurance to the international community diminishes," he warned.

Gates said Iran had "done nothing to reassure the international community", adding that "various nations need to think about whether it's time for a different tack."

"The purpose of pressure would be to bring Iran back to the negotiating table to negotiate seriously about constraining this program," he said.

"There is a very great worry that if Iran proceeds with his programme unconstrained, there is a very real danger of proliferation here in the region that would make it even more unstable," Gates warned.

On Friday, US Secretary of State Hillary Clinton said that Tehran had failed to give a proper response to the deal and that sanctions should be studied.

China, a permanent member of the UN Security Council, has objected to a new set of sanctions, saying that diplomacy should be given a chance.

Gates said Washington would continue to discuss the issue with China, expressing hope for a compromise.

"There will still be an effort to engage with China...I personally don't believe that door is closed just because I am an optimist," he said.

Gates, who flew into Turkey for a NATO defence ministers meeting on Friday, is to fly to Rome later Saturday before heading to Paris Monday.

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