European Union foreign policy chief Javier Solana says he plans to offer Tehran a "generous and comprehensive" incentives package in exchange for a suspension of Iran's nuclear program.
Solana arrived in Tehran Friday on behalf of the EU, China, France, Germany, Russia, Britain and the United States. He is scheduled to meet with Iranian leaders Saturday.
His trip is aimed at resolving an international standoff regarding Tehran's nuclear program.
Iran is under three sets of limited United Nations Security Council sanctions for defying demands to stop enriching uranium.
The United States and its allies accuse Iran of working to develop a nuclear weapon. Iran says its atomic program is for peaceful purposes.
Earlier this week in Germany, U.S. President George Bush said that all options, including military action, are being considered as a way to get Iran to abandon its nuclear program.
Mr. Bush also said he prefers using diplomacy to deal with the Iranian situation.
An Iranian Foreign Ministry spokesman said Mr. Bush's threat of military action against Tehran will not affect its nuclear ambitions.