MOSCOW (AFP) -- Iran's ambassador in Moscow late Monday welcomed an offer by Russian President Vladimir Putin to enrich uranium for Iran in Russia, an initiative that could allay international concern over Tehran's nuclear ambitions.

"This is a good initiative to find a way out of this situation. We think that Iran and Russia should find a way out together," the ITAR-TASS news agency quoted Gholam-Reza Ansari as saying in comments broadcast on Russia's state-owned Channel One television.

Ansari was reacting to remarks by Putin, who said that a Russian compromise deal with Tehran, which stipulates uranium enrichment could be carried out on Russian territory for Iran, was still in play.

"We have heard various points of view from our Iranian partners. The Iranian foreign ministry, notably, has said that it does not rule out accepting our proposal," Putin said earlier Monday at the close of talks with German Chancellor Angela Merkel in Moscow.

"Russia will continue cooperating with our European and American colleagues to resolve the Iranian problem," he added.

"Concerning the Iranian nuclear problem, it's necessary to work very carefully, without allowing abrupt, mistaken steps," Putin said.

The Russian proposal to enrich uranium on Iran's behalf has been welcomed by the West as a possible way out of the Iranian nuclear row.

Putin's comments came as high-level international talks were under way in London on a possible referral of Iran to the United Nations Security Council over its nuclear plans.

Merkel, in Moscow on her first visit there since taking office in November, had been expected to encourage Moscow to move closer to the Western position on Iran.

She signaled agreement on the subject with Putin, without revealing details.

"We discussed Iran in detail and we agreed to coordinate our next steps," Merkel said.

Moscow enjoys close ties with the Iranian leadership and is building Iran's first nuclear power station at Bushehr.