If Iran fails, the council would then consider possible sanctions, Bolton told reporters at the UN headquarters.

If Iran continues to pursue uranium enrichment, "the next step will be the consideration of sanctions in the Security Council, and it would be our intention to move forcefully to get those sanctions adopted," Bolton said.

A text of the resolution is to be distributed to the 15 nations on the council later Friday, and a vote could be carried out early next week, the US envoy said.

Bolton said the resolution would be "a mandatory command" to comply with International Atomic Energy Agency orders to halt uranium enrichment, a key component in nuclear weapons production.

Iran says its nuclear programme is peaceful but has refused to end its nuclear activities.

Britain, China, France, Russia and the United States -- the five permanent members of the Security Council -- drew up the draft resolution with Germany.

Britain, France and Germany have made an offer of economic and political incentives to Iran to halt its nuclear production. Iran has said it will not reply before August 22.

Russia's ambassador, Vitaly Churkin, stressed that the new resolution would not threaten sanctions and that it was "an invitation to dialogue" with Iran.

But he also acknowledged that if Iran did not respond, the Security Council would then consider possible sanctions.

Russia and China have led opposition to any talk of sanctions in the latest resolution.

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