China's Foreign Minister Li Zhaoxing and U.S. Secretary of State Condoleezza Rice discussed the Iran nuclear issue in a telephone conversation on Wednesday night, said a statement from China's Foreign Ministry.

"Their major topic was how to properly handle the Iran nuclear issue through diplomatic means," the statement said without elaborating.

Senior representatives from the five permanent members of the United Nations Security Council and Germany will meet in Vienna on Thursday to discuss the issue, the ministry said earlier.

China's Foreign Ministry spokesman Liu Jianchao said Tuesday that Vice-Foreign Minister Dai Bingguo would attend the meeting, which is expected to focus on a decision to offer Iran a package of incentives in return for suspension of its nuclear activities.

The six nations achieved some progress in forming a common position at a meeting in London last Wednesday.

Meanwhile, France, Germany and Britain, or the EU-3, have been trying to work out a package of both incentives and possible penalties to persuade Iran to suspend its nuclear programs.

Iran's Foreign Minister Manouchehr Mottaki said in Malaysia on Tuesday that Iran was ready to restart negotiations with the three European countries over its nuclear enrichment program.

Rice said on Tuesday that the United States was "glad" to learn Iran was prepared to return to talks.

China has supported a peaceful resolution of the issue through diplomatic means and negotiations, and has repeatedly urged the parties concerned to take a constructive attitude to create favorable conditions for the resumption of negotiations.

Chinese Foreign Ministry spokesman Liu said on Tuesday Iran had the right to the peaceful use of nuclear power as a signatory to the Non-Proliferation Treaty, but it should also fulfil its corresponding responsibilities and commitments.

"Iran urgently needs to fully cooperate with the International Atomic Energy Agency and regain the confidence of the international community on its nuclear program," Liu said.