UN ambassadors from the six countries announced a deal on Thursday on a new sanctions resolution that was submitted to the Security Council's 10 non-permanent members ahead of a vote expected next week. The compromise text emerged after 10 days of hard-nosed bargaining by the Council's five veto-wielding permanent members -- Britain, China, France, Russia and the United States -- plus Germany.

"Yes, we have an agreement," Russian Ambassador Vitaly Churkin told reporters after a final round of talks on how to rein in Iran's suspected efforts to develop a nuclear bomb.

The agreement virtually ensures that measures to broaden existing sanctions and impose some new ones will be approved by the 15-member Council when the draft is put to a vote, likely next week.

"It's a good, balanced, incremental step," US acting Ambassador Alejandro Wolff said.

In Washington, the White House said US President George W. Bush hoped for a vote "soon."

Confrontation programmed

News of the agreement set the stage for a dramatic confrontation with President Mahmoud Ahmadinejad, who formally asked to attend the Council meeting when the sanctions come up for a vote.

"He (Ahmadinejad) wants to come when the resolution is being adopted," said South African Ambassador Dumisani Kumalo, who chairs the Council this month.

Kumalo earlier said a vote could come next week.

Ahmadinejad: "Security Council has no legitimacy"

A defiant Ahmadinejad, who insists Tehran's nuclear program is for strictly peaceful purposes, earlier Thursday dismissed the new sanctions package and slammed the Security Council.

"Today the enemies of the Iranian people are seeking to use the Security Council to prevent the progress and development of Iran. But the Security Council has no legitimacy among the peoples of the world," he said in a speech in the central Yazd province.

Ahmadinejad's defiance was echoed -- albeit in a more measured way -- by the foreign policy adviser of supreme leader Ayatollah Ali Khamenei who said Iran would continue its nuclear drive and played down the effect of more sanctions.

Ali Akbar Velayati, a highly influential former foreign minister, said Iran would not "repeat the experience of suspending its uranium enrichment activities as the United States would not be satisfied by this and would then bring up other questions."

No military action

The new UN draft resolution builds on the sanctions imposed by the Security Council in December after Tehran spurned repeated UN demands to freeze uranium enrichment, a possible pathway to nuclear weapons. Those measures included a ban on the sale of nuclear and ballistic missile-related materials to the Islamic republic and a freeze on financial assets of Iranians involved in illicit atomic and ballistic missile work.

The new draft, a copy of which was obtained by AFP, would bar Iran from exporting arms and would urge all states to restrict the sale or transfer "of any battle tanks, armored combat vehicles, large-caliber artillery systems, combat aircraft, attack helicopters, warships, missiles" and other arms.

It calls for a voluntary travel ban on additional officials and companies involved in Iran's "proliferation sensitive" nuclear and ballistic missile programs. It also urges voluntary restrictions on "new commitments for grants, financial assistance and loans to Iran" as well as extending an assets freeze to additional entities and individuals linked to Iran's nuclear and missile programs.

The text would give Iran 60 days to comply with repeated UN demands or face "further appropriate measures" (economic sanctions but no military action) under Article 41 of the UN Charter.

Visiting French Prime Minister Dominique de Villepin told reporters here that Tehran had a choice between accepting its "international obligations concerning enrichment" or sanctions.