This weekend's meeting between Iran's chief negotiator Ali Larijani and the European Union's foreign affairs representative Javier Solana might be the last chance to find an acceptable solution to the nuclear dispute between Tehran and the international community. The two men met at the weekend in Vienna in a bid to reach a compromise before any possible punitive action is taken against Iran, after the country ignored an Aug. 31 United Nations Security Council deadline to stop enriching uranium.

Both men stated that certain "misunderstandings" had been cleared up and that their talks would continue, possibly as soon as this Thursday. "We have clarified some of the misunderstandings that existed before. We have made progress that we want to continue," Solana said after the meeting.

And it seems the Iranians showed some willingness to compromise. An unnamed diplomatic source told the Associated Press that Larijani had offered to freeze uranium enrichment for two months, but there were no details as to when the suspension might commence. Larijani himself, in an interview with Vienna's Kurier newspaper, said that the suspension of the enrichment was "conceivable."

However, it is unclear if Iran would meet Western demands to suspend enrichment before the start of talks on the package of trade incentives. Reuters reports that Aliasghar Soltani, an Iranian diplomat who accompanied Larijani to Vienna, denied that a suspension had been discussed with Solana. The White House responded with caution -- spokesman Tony Snow told reporters, "We are still trying to assess what the Iranian position is."

Any move to halt suspension would be a major departure for Iran, which insists it wants to develop its enrichment program to generate nuclear power. Western governments, however, are accusing Tehran of using the civilian energy program as a cover for developing nuclear weapons.

The seemingly positive outcome of this weekend's talks could now make it more difficult for the US to push for sanctions at the Security Council . Washington and London want the UN to impose sanctions against Iran, following Tehran's failure to meet the Aug. 31 deadline. However, other members such Russia and China, which both have strong trade ties with Iran, are resisting a quick move to sanctions and could block them.

The five permanent members of the Security Council plus Germany had made a halt to enrichment a precondition for negotiations with Iran over an international incentive package, which includes offers of economic and technical cooperation, including the delivery of nuclear technology, in exchange for Iran halting its own enrichment program.

The International Atomic Energy Agency's board is meeting Monday and will discuss the nuclear dispute with Iran. The director of the IAEA Mohammed El-Baradei is expected to express his concern that any economic sanctions could lead to Iran prohibiting further inspections by IAEA officials.