TEHERAN, IRAN (AFP) - PRESIDENT Mahmoud Ahmadinejad said on Thursday conditions were ripe for nuclear cooperation with the major powers as the atomic watchdog received an Iranian response to a UN-brokered plan.

Breaking with his usual hardline rhetoric, Mr Ahmadinejad hailed what he said was a change in Western policy from 'confrontation to cooperation' that had made cooperation possible over Iran's nuclear programme.

'We welcome fuel exchange, nuclear cooperation, building of power plants and reactors and we are ready to cooperate,' the Iranian leader said in a speech broadcast live on state television.

The International Atomic Energy Agency said it received a response from Teheran to the UN-brokered plan, without detailing its contents.

IAEA Director General Mohamed ElBaradei had 'received an initial response from the Iranian authorities to his proposal to use Iran's low-enriched uranium for manufacturing fuel for... the Teheran Research Reactor, which is devoted mainly to producing radioisotopes for medical purposes,' the watchdog said.

Mr ElBaradei was 'engaged in consultations with the government of Iran as well as all relevant parties, with the hope that agreement on his proposal can be reached soon', but the United States said later on Thursday it was still awaiting a 'formal' reply from the Islamic republic.