Amid growing international pressure on Iran over its controversial nuclear programme, India on Wednesday said the International Atomic Energy Agency should play a central role in resolving the issue and called for restrain and flexibility by all sides.

The IAEA is the United Nations nuclear watchdog.

"We believe that Iranian nuclear issue should be resolved peacefully and through dialogue and negotiations," External Affairs Minister Pranab Mukherjee told reporters in Tehran after his 90-minute talks with Iranian Foreign Minister Manouchehr Mottaki.

"The IAEA should play a central role in resolving the outstanding issues," he said at the joint press briefing.

Mukherjee emphasised that a peaceful negotiated solution would be facilitated by enhanced cooperation between Iran and the IAEA.

When referred to the UN Security Council resolution imposing sanctions on Iran, Mukherjee said it also underscores the role of IAEA and provides an opportunity for resolving the issue through dialogue.

Mottaki said that Iran had legal rights to pursue civil nuclear programme and will not accept any pre-conditions for talks.

He said Iran was ready to work for the strengthening of the nuclear non-proliferation regime and any suggestions could be made during the talks.

He also said that the issue needed to be resolved through dialogue.

Mottaki said Iran nuclear activities are already under surveillance and inspections of IAEA.