Western powers are very skeptical about Iran’s claims that a deal to swap enriched uranium for nuclear fuel could now be close, BBC reports Saturday.

Iran's Foreign Minister Manouchehr Mottaki told the 46th Conference on Security Policy in Munich that an agreement could be reached in a "not too distant future".

China confirmed that talks were at a "crucial stage", but the US and European Union say they are still not persuaded Iran is not attempting to develop nuclear weapons.

US Defense Secretary Robert Gates, who is on an official trip to Turkey, is quoted as stating that Western powers needed to think about whether it was now time for a "different tack". Gates was backed by the US National Security Adviser, General James Jones, who warned Iran of tighter sanctions and deeper international isolation.

German Foreign Minister, Guido Westerwelle, and EU Foreign Affairs Chief, Catherine Ashton, who are among the participants of the Munich security conference, also expressed serious doubt in Iran’s intentions.

It was reported in January that Iran had informed the International Atomic Energy Agency (IAEA) the country is rejecting the terms of a deal agreed in October by Iran, the IAEA and the US, Russia, China, UK, France, and Germany.

The move came despite recent comments by Iran's President Mahmoud Ahmadinejad indicating that the country would have "no problem" sending much of its low-enriched uranium abroad so it could be processed into fuel,” as agreed in October.