UNITED NATIONS/TEHRAN (Reuters/AFP) - Iran has told the UN nuclear watchdog that it wants fresh nuclear fuel for a reactor in Tehran before it will agree to ship most of its enriched uranium stocks to Russia and France, diplomats said on Friday. In what the International Atomic Energy Agency has described as an initial response to an IAEA-drafted nuclear fuel proposal, Western diplomats said on condition of anonymity that major Western powers found the Iranian demand for immediate access to fresh atomic fuel unacceptable. The Iranians want to get enriched uranium fuel for their reactor first before they send it aboard, which simply isnt acceptable, a diplomat told Reuters. Another diplomat confirmed the remarks as accurate. The diplomats said it was unclear whether the proposal was a serious one or if the Iranians were only trying to drag out the negotiating process. Earlier, Irans official IRNA news agency said Tehran wants more talks on how to procure nuclear fuel for a Tehran reactor before it gives a final reply to a UN-drafted deal. The UN atomic watchdog said on Thursday it has received an initial response from Iran to the deal, but IRNA said it was not Tehrans answer to the plan brokered by the agency. The Islamic republic only announced its positive view to the negotiation and has said it is ready to have negotiations based on its technical and economic considerations regarding how to procure fuel for the Tehran reactor, IRNA said, quoting an unnamed informed source. IRNA also indicated that Tehrans message to the IAEA was not an answer to the draft agreement, adding that Iran would announce its full position after further negotiations. The US warned that Iran did not have unlimited time to accept the UN-drafted fuel deal with global powers on its nuclear programme. The presidents time is not unlimited, this was not about talking for the sake of talking, this was about reaching an agreement that just a few weeks ago seemed to be something that the Iranians wanted, White House spokesman Robert Gibbs said. European Union leaders urged Iran on Friday to accept the deal, saying progress would open the way to cooperation with the EU. A statement agreed by EU leaders at a summit in Brussels said they remained gravely concerned about Irans nuclear programme. The European Council also calls upon Iran to agree with the IAEA to the scheme of nuclear fuel supply for the Tehran research reactor, which would contribute to building confidence while responding to Irans need for medical radio-isotopes, said the statement, which was obtained by Reuters. Progress ... would pave the way for enhanced relations between the EU and Iran and open the way to mutually beneficial cooperation in the political, economic, security and technical fields. It said the Council of EU leaders would decide in the context of the dual-track approach on our next steps. This is a reference to a policy proposing incentives for Iran to abandon its nuclear work, or sanctions if it does not. Denmarks foreign minister said there was no alternative to sanctions if Iran did not cooperate by the year-end. French Foreign Ministry spokesman Bernard Valero said Iran had appeared to have given only a verbal indication of Tehrans position and had proposed changes which he did not specify. We call on Iran to give the agency a formal, positive response on the accord without delay, Valero told a regular news briefing in Paris.