Iran has ramped up production of highly enriched uranium, according to a confidential UN watchdog report, as Tehran said Saturday that it had received US proposals to settle its long-running nuclear dispute with the West.

Iran rejected the report by the International Atomic Energy Agency (IAEA), the latest move in years-long efforts to restrict its nuclear activities over fears that it is seeking to develop nuclear weapons.

The IAEA report, seen by AFP, said Iran had sharply increased its stockpile of uranium enriched to up to 60 percent, close to the roughly 90 percent level needed for atomic weapons.

Iran rejected the report, which came amid high tensions in the Middle East over Israel's military offensive in Gaza, with Tehran's foreign ministry calling it a "political" manoeuvre.

The ministry accused Israel of providing "unreliable and misleading information" to the IAEA for the report, "contrary to the IAEA's principles of professional verification".

Iran's Foreign Minister Abbas Araghchi said earlier Saturday that he had received "elements" of a US proposal for a potential nuclear deal following five rounds of talks mediated by Oman.

Omani Foreign Minister Badr al-Busaidi "paid a short visit to Tehran today to present elements of a US proposal........

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