TEHRAN Iranian President Mohammad Khatami said on Tuesday that the Islamic Republic of Iran is willing to remove the misunderstanding with the United Arab Emirates over the three Iranian islands without mediation.

The president made the remark in an interview with Qatar's Arabic-language Al-Sharq newspaper.

The Iranian islands of Abu Musa and the Greater and Lesser Tunbs are located near key shipping lanes in the Strait of Hormoz. The UAE has time and again made unfounded claims on the islands, but Iran has refuted the claims, stressing that they are integral part of Iran.

"We are working to create an atmosphere of honesty and discussion between us and the UAE, without mediation, to resolve the problem on the highest levels," Khatami said.

"And we will succeed in finding suitable solutions," he added.