Iranian President Mahmoud Ahmadinejad, however, dismissed any new UN sanction resolution as a "torn piece of paper" that would not stop Tehran's nuclear work.

The measure, which may be adopted next week, would penalize Tehran for refusing to suspend uranium enrichment. Enriched uranium can be used in nuclear bombs or for peaceful ends.

The major-power agreement includes a ban on Iranian arms exports, an asset freeze on individuals and firms involved in Tehran's nuclear and ballistic missile programmes and a call to nations and institutions to bar new grants or loans.

Alejandro Wolff, a US ambassador told reporters, "I'm satisfied with the compromise outcome," which was sent to governments of the six countries on Wednesday night.

"There are lots of things that we would have wanted handled differently," he said, "I think that's a fair statement that would apply to every member."

The new measures follow a resolution adopted in December that imposed trade sanctions on Iran's sensitive nuclear materials and technology, and froze the assets of some Iranian individuals and companies. Iran, which insists its nuclear programme is for peaceful purposes only, ignored a February 21 deadline to suspend enrichment or face further action.

The text says Iran is banned from exporting any conventional weapons. But the measure calls on states to "exercise vigilance and restraint" in shipping any heavy weapons to Tehran.

The measure would suspend the sanctions if Iran complies with the council's demands within 60 days. If Tehran does not, further action would be considered.

CNN