NEW YORK, Oct 21: As soon as the report about Iran’s agreement in principle to hold talks with the US over its nuclear programme emerged, top US officials denied the report as did Iran.

On Saturday night The New York Times said “Iranian officials have agreed in principle to direct bilateral talks on Iran’s hotly-contested nuclear programme.”

Israel has threatened to attack Iran time and again deeming it a threat to its security despite assurances by Tehran it would not produce a nuclear weapon as it was against its beliefs.

Besides the Iran’s nuclear issue has been inserted into US elections by the Republicans who say President Obama’s decision to hold talks with Iran is betrayal of its best friend and ally in the region, Israel.

The US National Security Council spokesman denies any such agreement exists. On Sunday, Iran’s foreign minister said there are no discussions or negotiations with the United States.

Neither government is ruling out the possibility of one-to-one talks, but at least for now, both say they are working within the so-called “P5-plus-one” group comprising the permanent UN Security Council members plus Germany.

Appearing on Fox News on Sunday, Democratic Senator Richard Durbin said negotiations resulting in Iran’s abandonment of its suspected pursuit of nuclear weapons would be a positive step forward.

“If direct negotiations are a path towards a peaceful resolution with Iran giving up on the notion of a nuclear weapon, [then] pursue it. If meeting collectively is better, pursue that as well.

But as Nicholas Burns, who was the negotiator for President George W. Bush in Tehran, said it would be unconscionable for us not to meet and talk. “We do not want to drive into that brick wall of war in 2013 without sitting down and speaking to the Iranians.”

Iranian on their part are also weary of holding talks before the November elections in the United States which is considered to be a close race between President Obama and the Republican challenger Mitt Romney.