Iran has defied international demands to rein in its nuclear program and has increased its stockpile of uranium enriched to near weapons-grade levels, according to a confidential report by the United Nations’ nuclear watchdog seen Tuesday by The Associated Press.

Iran has tried in vain to prevent a Western push for a resolution against it at the U.N. nuclear watchdog's board meeting by offering to cap its stock of uranium just shy of weapons grade, the watchdog and diplomats said on Tuesday.

VIENNA (Reuters) - Iran has offered not to expand its stock of uranium enriched to up to 60% purity, near the roughly 90% of weapons grade, and made preparations to do that, the U.N. nuclear watchdog said in confidential reports to member states on Tuesday.

Iran has agreed to stop producing uranium enriched close to the level required for nuclear weapons, a sign the Islamic Republic may be ready to resolve a standoff with the West over its atomic activities.