Russian Foreign Minister Sergei Lavrov on Wednesday criticised a draft UN Security Council statement aimed at pressuring Iran to stop enriching uranium, despite a new offer of amendments by Western powers.

The next step is likely to be bilateral contacts among ministers of the council's five veto-wielding permanent members, the United States, France, Britain, China and Russia, diplomats close to the talks said.

A spokesman for China's Foreign Ministry, Qin Gang, said President Hu Jintao and Putin discussed Iran during Putin's two-day visit.

"China and Russia exchanged views and both sides agreed the Iran nuclear issue should be resolved through diplomatic means," Qin told reporters.

Hu and Putin agreed that "all the related parties should display flexibility and patience," Qin added. "China supports Russia's active efforts to appropriately resolve the Iran nuclear issue."

Russia, backed by China, wants to delete large sections of the draft statement the Security Council has been studying for nearly two weeks as a first reaction to Iran's nuclear research, which the West believes is a cover for bomb-making. Iran insists it wants only to produce electric power.

Both nations fear that involvement by the 15-member council, which can impose sanctions, could escalate and lead to punitive measures including possibly military action.

Asked whether China and Russia would block the proposed UN statement on Iran, Qin said: "In making any actions or decisions the concerned parties should be focused on whether they truly help to reach a lasting resolution of the Iran nuclear issue, and whether they help the peace and stability of the region ... That is why we should give diplomacy more time and more space."

Qin said on Tuesday China supported a Russian compromise proposal that would allow Iran to use nuclear fuel enriched in an internationally monitored plant on Russian soil, easing fears that Tehran could divert atomic material to develop weapons.

Meanwhile, envoys of the five veto-wielding members of the UN Security held informal contacts here Wednesday but failed to break an impasse over a draft statement urging Iran to suspend uranium enrichment.

US ambassador John Bolton hosted the gathering at his country's UN mission, which was attended by his counterparts from Britain, China, France and Russia.

"No agreement," Russian Ambassador Andrei Denisov told reporters after the 90-minute session which he described as "constructive".

"We truly tried to keep unity of our small group ... We still need time to consult," he added.

"The consultations continue," Bolton said.

After two weeks of talks, the 15-member Security Council is unable to agree on a Franco-British statement that aims to reinforce demands by the International Atomic Energy Agency (IAEA) that Iran halt activities such as uranium enrichment, which could aid weapons development.

Tuesday the council postponed a scheduled formal meeting to allow more time to narrow differences the text. No new date has yet been set.

Diplomats said the talks are bogged down over Russian and Chinese objections to any hint of punitive measures in the statement.