Manila - Iran's foreign minister on Thursday shrugged off the possibility of sanctions after rejecting a compromise deal to ship enriched uranium abroad for further processing.

Foreign Minister Manouchehr Mottaki, who was in Manila for a two-day visit, said Tehran was open to hold further talks on "the best possible" way to resolve the matter.

"Don't take it so serious," he told a press conference in Manila when asked if Iran was prepared to face more sanctions for rejecting the compromise deal.

"Sanctions was the literature of the 60s and the 70s," he added. "I think they are wise enough not to repeat failed experiences. Of course, it is totally up to them."

Mottaki was quoted on Wednesday by ISNA news agency as saying that Iran was rejecting a deal negotiated by the UN nuclear watchdog, the International Atomic Energy Agency.

Under the deal, Iran was supposed to ship its low-grade enriched uranium to Russia and France where it would be processed into fuel for Tehran's medical research reactor.

Despite the rejection, Mottaki reiterated that Iran was prepared to discuss a "straight swap and direct exchange" inside the country.

"Iran raises its readiness to have further talks within the framework which has been presented," he said. "We have always supported discussions and talks."

Meanwhile, US President Barack Obama said in Seoul that the US and its international allies would discuss "consequences," most likely in the form of tougher sanctions against Iran, after the Islamic state apparently rejected the fuel compromise. (dpa)