Diplomats at the UN have reached agreement in principle on a package of new sanctions against Iran, following its refusal to stop enriching uranium.

The draft resolution is expected to be presented to the Security Council for discussion on Thursday.

The sanctions may include a ban on the export of arms from Iran, and a freeze on the assets of key Iranian officials.

Iran says its nuclear programme is peaceful, but Western governments suspect Iran of wanting a nuclear bomb.

Ambassadors from Britain, France, the United States, China and Russia - the five permanent members of the Security Council - and Germany agreed the draft resolution in principle.

The governments must now approve the text before it is presented to the full Security Council, likely on Thursday.

'Exclusive wisdom'

Diplomats predict the sanctions will include an embargo on Iranian arms exports and an asset freeze on more individuals and companies associated with Tehran's nuclear programme.

The new resolution would also call on governments to make no new commitments "of grants, financial assistance, or concesssional loans to the government of Iran," a diplomat said, speaking on condition of anonymity.

South Africa's ambassador, Dumisani Kumalo, warned that the 10 non-permanent Security Council members, not involved in the discussions so far, now wanted to have their say.

"Nowhere in this process have they ever said that the five plus one would have the exclusive wisdom of producing [the draft resolution] and for us to rubber-stamp," he said.

Asked whether the Iranian President, Mahmoud Ahmadinejad, will come to the UN to be present for the vote, Mr Kumalo said it was still theoretical because no vote has yet been scheduled.

Mr Kumalo said it could be next week before the Council votes on the resolution.

PHOTO CAPTION

Iran's President Mahmoud Ahmadinejad gestures during a visit to the 'Cuba Libre' neighborhood in Managua, Sunday, Jan. 14, 2007. (AP)