Iran denied Wednesday the reports said that the world powers submitted a proposal to Iran to reduce uranium enrichment during Baghdad nuclear talks.

"Any proposal to reduce uranium enrichment from 20 percent to 5 percent and in return to ease sanctions imposed on Iran, has not been presented by world powers," Talib Mahdi, a member of the Iranian delegation, told Xinhua on the sidelines of Baghdad nuclear meeting between Iran and the world six major powers in addition to European Union (EU).

"Such proposal could be accepted by Iran because it would be a clear international recognition that Iran has the right to obtain nuclear energy," Mahdi said.

Earlier in the day, Michael Mann, spokesman of EU's foreign policy chief Catherine Ashton, told reporters on the sidelines of Baghdad nuclear meeting that "we have presented a proposal to Iran stating that Iran to reduce its uranium enrichment from 20 percent to 5 percent in return for easing sanctions."

In the afternoon, representatives from Iran and the UN Security Council's five permanent members (the United States, Britain, France, Russia and China) plus Germany, known as P5+1, in addition to EU, kicked off crunch talks aimed at defusing the long-running escalating crisis over Tehran's nuclear program.

The meeting was held in one of the palaces in the presidential complex in the heavily fortified Green Zone in central Baghdad that houses the Iraqi government offices and some foreign embassies, including the U.S. one.

Iraq hopes that hosting such significant international meeting is another signal to the world after hosting the Arab League summit late in March, to confirm the country's emergence from isolation after wars and unrest.

The UN has by now imposed several rounds of sanctions against Tehran for its refusal to halt uranium enrichment, a technology that can be used to produce nuclear fuel or materials for bombs.

The EU, the United States and some other countries have imposed an oil embargo as part of their sanctions to pressure Tehran into resuming talks on the country's nuclear program. They have also imposed tough banking sanctions aimed at limiting Iran's ability to sell oil, which accounts for 80 percent of its foreign revenues.