A senior Iranian official said Saturday that a proposal by Moscow to enrich Iranian uranium in Russia is dead following the U.N. nuclear agency's decision to report Iran to the Security Council.

Javad Vaeidi, deputy head of the powerful National Security Council, said there was no "adequate reason to pursue the Russian plan."

"Commercial scale uranium enrichment will be resumed in Natanz in accordance with the law passed by the parliament," Vaeidi told state television in a telephone interview from Vienna, Austria. Natanz is Iran's main enrichment plant.

The Russian government had proposed that Iran shift its plan for large-scale enrichment of uranium to Russian territory to allay world suspicions that Iran might use the process to develop a nuclear bomb.

Uranium enriched to a low degree is used as fuel for nuclear reactors. But highly enriched uranium is suitable for making atomic bombs.