(BRUSSELS) - EU foreign policy chief Javier Solana held telephone talks on Monday with Iran's top nuclear negotiator Saeed Jalili and further contacts are possible, Solana's office said.

No details of the talks were given.

Solana represents the six nations involved in negotiations aimed at persuading Tehran to freeze its uranium enrichment programme -- Britain, China, France, Germany, Russia and the United States.

The six powers have offered Iran an incentives package in return for a freeze in uranium enrichment activities.

"We still hope to solve the problem with Tehran through the diplomatic route, but if that's not possible, it will be necessary to continue on the path of (UN) Security Council sanctions," a European source said.

"The offer presented to Tehran remains on the table. It is generous and responds to Iran's concerns," the source added.

"The objective is to keep the door to dialogue open with Tehran with these contacts."

The telephone talks came just days after European Union nations toughened their sanctions against Iran over its atomic drive, which Western nations fear could be a cover for a secret nuclear weapons programme.

The 27-member EU announced it was introducing restrictions on public loans and tougher cargo inspections, in line with the third and latest UN resolution against Iran.

The move came after Tehran gave an inadequate answer to the demands of the six nations, the UN Security Council permanent members plus Germany.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.