The International Atomic Energy Agency (IAEA) has confirmed receiving Iran's reply on the UN-brokered nuclear fuel deal.

"Director-General Mohamed ElBaradei has received an initial response from the Iranian authorities to his proposal to use Iran's low-enriched uranium for manufacturing fuel for the continued operation of the Tehran Research Reactor," the UN nuclear agency said in a statement.

The Tehran Research Reactor is used for the purpose of producing radioisotopes to be used in cancer treatment by over 200 hospitals in Iran.

Iran's IAEA envoy Ali Asghar Soltanieh had earlier told Press TV that the "Economic and technical concerns regarding the supply of fuel for the research reactor (in Tehran) should be addressed," in any talks regarding the country's nuclear program.

The IAEA statement did not elaborate of the Iranian response but said it was hopeful that an agreement could be reached with Tehran.

"The Director-General is engaged in consultations with the government of Iran as well as all relevant parties, with the hope that agreement on his proposal can be reached soon," the statement by the watchdog added.

Iranian President Mahmoud Ahmadinejad said on Thursday that the country is ready for cooperation with other countries in developing its nuclear energy program and described a deal to exchange nuclear fuel with other countries as a victory for Iran.

The president also warned the West against any 'plot' regarding the nuclear deal.

The deal brokered by the IAEA would require Iran to ship out 80 percent of its low-enriched uranium (LEU) in exchange for highly-enriched uranium converted into metal fuel rods for the Tehran research reactor.

On Tuesday, a diplomat familiar with the issue told Press TV that Iran was against sending out all the material in one go.

"Iran, as a uranium buyer, knows best how much uranium, enriched to a level of 19.75 percent, it needs; based on this argument, it will raise certain issues with this proposal," the diplomat said.

DB/HGH