As a member of the 35-nation IAEA board, SA has played a key role in efforts to ensure a deal on Iran in line with its policy of giving all nations the right to use nuclear energy for civilian purposes.

"We believe there is space to prevent us from going over the cliff," Pahad told Reuters.

He sadi a move by Russia, China, Britain, France and the US to report Iran to the UN Security Council was not the end of diplomacy.

The IAEA, the UN nuclear watchdog, looks set to report Iran to the Security Council later on Friday over fears that it may be using its nuclear programme to build atom bombs.

Russia and China have endorsed a European-sponsored resolution to put the Council on notice so long as Tehran is given at least a month to cooperate fully with the UN probes before further action, possibly sanctions, are taken.

The proposal will now be put to the 35-nation IAEA board.

Pahad said there was still room to secure a resolution that was acceptable to all sides.

"I believe that whatever decision will be taken today will not create the conditions for us to aggravate the situation."

Iran, the world’s number four oil producer, has threatened to respond should it be reported to the Council by halting UN spot checks of its atomic sites as part of the world treaty to deter clandestine nuclear bomb-making.

Tehran says it only wants nuclear power for electricity.

"We don’t think we have exhausted all the possibilities of convincing all sides to find what must be a situation that will ensure that everybody has confidence that there will be no weapons programme," Pahad said.

"There is still a month and we are waiting for the report of (Mohamed) Elbaradei, the governor of the IAEA, in March and that will determine the atmosphere in the Security Council discussions."