Diplomats at the United Nations say Britain, France, and Germany will offer Iran incentives along with possible sanctions for giving up its nuclear program.
The diplomats said Tuesday the three European nations, which held failed talks with Iran in the past, will have a package ready by next week.
U.S. Secretary of State Condoleezza Rice said Tuesday the United States has long supported Russian and European efforts to allow Iran to fulfill its desires for a civilian nuclear program.
Rice and ministers from the other permanent Security Council members -- along with Germany -- met in New York Tuesday on a resolution threatening Iran with sanctions.
While China and Russia say they will veto sanctions, Rice said there is total agreement that Iran cannot have a nuclear weapon.
President Bush said Tuesday diplomacy remains the number one option in dealing with Iran. He said the international community will isolate Iran if it does not give up its controversial nuclear activities.
The United States suspects Iran is trying to build a nuclear weapon. Iran insists its nuclear program is for civilian energy use.