A senior Iranian official has discussed human rights with the European Commission amid speculation that the European Union is seeking to improve ties.

Deputy Foreign Minister Mohammad Javad Zarif reportedly told the EU's Commissioner for External Affairs, Chris Patten, that human rights rapporteurs might be invited to visit Iran.

If you don't talk to the reasonable people, you fetch up with fewer reasonable people to talk to

EU Commissioner Chris Patten

An unnamed EU diplomat told Reuters news agency that the meeting in Brussels was not meant to reach any decisions but formed part of a "continuing process of dialogue".

The United States still regards Iran as a sponsor of terrorism and threatens trade sanctions against any states which make major investments in its energy sector.

Mr Patten told the BBC before the meeting that the dialogue was aimed at bolstering Iranian reformists such as its elected president, Mohammad Khatami.

"It can't seriously be anybody's idea of a good way of promoting stability in the region to think that we should isolate and cut Iran off for ever," he said.

"If you don't talk to the reasonable people, you fetch up with fewer reasonable people to talk to."

Invitation

The diplomat who spoke to Reuters after Tuesday's talks said that Iran had spoken of a "window of opportunity in relations with the EU".

"They made some suggestions, including the possibility of inviting human rights rapporteurs to visit Iran to discuss specific themes such as the judicial system," the diplomat said.

European foreign ministers who met in Luxembourg on Monday warned that closer trade and economic links with Iran would have to be matched by Iranian efforts to stop terrorism and the spread of nuclear, biological and chemical weapons.

"There has to be progress on the political dialogue, there has to be progress on terrorism and there has to be progress on trade and co-operation and the three have to be linked," Mr Patten said for his part.

Israel has expressed dismay at the meeting in Brussels, arguing that Iran supports and encourages terrorism in the Middle East.

In Washington, State Department spokesman Richard Boucher said the US would continue to "consult closely with European officials regarding Iran policy and would have to look at� actual business developments in terms of US law".

In 2000, EU imports from Iran - mostly oil products - totalled $8 billion whereas the value of EU exports to Iran in the same year amounted to $5 billion.

Closer EU contacts with Iran are seen in European capitals as crucial for bolstering security in and around the Middle East, the Gulf and Central Asia including Afghanistan.