"We are profoundly concerned by Iran's continued lack of transparency regarding its nuclear activities and its stated intention to continue and expand enriching uranium, including to nearly 20 percent," G8 leaders said in a communique.

"Our goal is to persuade Iran's leaders to engage in a transparent dialogue about its nuclear activities and to meet Iran's international obligations," the leaders of the Group of Eight richest nations said.

They welcomed all efforts to rein in the Islamic Republic's suspect uranium enrichment program, making special note of efforts to broker a deal by Brazil and Turkey.

The final statement after two days of talks in Canada urged Tehran "to implement relevant resolutions to restore international confidence in the peaceful nature of Iran's nuclear program."

The UN Security Council this month slapped a fourth set of sanctions on Iran for its refusal to rein in its uranium enrichment program.

The West has accused Iran of seeking to acquire a nuclear weapon, charges Tehran has angrily denied, saying its atomic program is for peaceful civilian purposes only.

Iranian President Mahmoud Ahmadinejad said on Thursday that Iran will next week lay down its conditions for talks with the world powers.

Soon after the UN sanctions resolution was passed, the world powers and the European Union called for talks with Tehran to resolve the issue, indicating a dual-track policy of both sanctions and dialogue.

Ahmadinejad said the offer of talks showed the world powers "themselves are more afraid because soon after the resolution they said they want talks with Iran.

"Those countries that are threatening the Iranian nation are afraid, but Iran will neutralize their threats."

The hardline Ahmadinejad's remarks suggest that Iran's conditions for fresh talks are likely to be tough.

"While recognizing Iran's right to a civilian nuclear program, we note that this right comes with international obligations that all states, including Iran, must comply with," the Group of Eight leaders stressed.

The leaders of the eight nations -- Britain, France, Germany, Italy, Japan, Russia, and the United States met for two days of talks in an exclusive lakeside resort north of Toronto.

The White House immediately welcomed the strong statement, saying US moves had "strengthened the world's resolve to address the challenge of Iran's nuclear program and Iran's failure to fulfill its obligations."

"Our comprehensive strategy has produced a stronger global determination to prevent Iran from acquiring nuclear weapons and persuade Iran to engage seriously with the international community," the US administration said in a statement.

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