"It is a positive step, a step forward," Ahmadinejad said of the shock report, which contradicted previous White House assertions on the Iranian nuclear programme.

"If they take one or two more such steps, the issues will be totally changed and... the way will be paved for the resolution of regional and bilateral issues," he told a news conference.

The National Intelligence Estimate -- the consensus view of all 16 US spy agencies -- said Iran had halted a nuclear weapons programme in 2003, whereas the White House had previously accused Tehran of continuing an active atomic weapons drive.

The Iranian president called repeatedly in the marathon two-hour news conference for the NIE published last week to be followed by other "positive steps" from the United States, a contrast from his usual fiery invective against Washington.

Last week, he had declared the report a "great victory" for the Islamic republic and said it was the "final blow" for the hopes of world powers over the Iranian nuclear drive.

The report "provides a good opportunity. It needs to be exploited correctly," Ahmadinejad told the news conference.

However the White House reacted coldly to the comments, remarking that it was up to Iran to take the first steps to mend the two countries' broken ties.

"We totally agree with the Iranian president. One or two more steps are needed," said White House spokesman Gordon Johndroe.

"Let's start with Iran suspending its uranium enrichment process and go from there," he added, referring to the key demand of the West in the nuclear crisis which Ahmadinejad has vowed never to heed.

For his part, Ahmadinejad said Washington needed to make the unlikely moves of a major reversal in its Middle East policy and declaring the Iranian nuclear crisis over.

"Let us not get into a hurry. Let them (the Americans) follow the step they have taken. One of the steps that need to be taken is a major change in the regional situation," Ahmadinejad said.

"They need to respect the rights of the countries in the region. If this happens, you will be able to see the results."

Pressed over what further steps the United States could take, Ahmadinejad replied: "A second step could be on the nuclear issue. They could say that the issue has been finished."

The two foes have had no diplomatic relations since 1980 when Washington cut ties during the 444-day siege of the US embassy in Tehran by Islamist students in the wake of the Islamic revolution.

Exchanges since then have been marked by rivalry and acrimony. But despite mounting tensions, Iran and the United States have already held three rounds of talks this year over the security situation in Iraq.

Ahmadinejad again rejected the latest US report's renewed assertion that Iran had been working to develop a nuclear programme before 2003.

"We do not say that in the report there is no problem and there is no imprecision or error. We welcomed the report favourably as a whole and it is a step forward."

The NIE said US allegations about Iran's atomic goals had been overblown for at least two years, although it said the Islamic republic could have the capability to make a nuclear weapon by 2015.

Ahmadinejad said there would be no let-up in Iran's nuclear programme in the years to come, with plans afoot to install 50,000 uranium-enriching centrifuges within the next five years.

"We need to work at the same rhythm for four to five years to have the fuel for a power station. We will continue on this path," Ahmadinejad said.

Conspicuously, Ahmadinejad's news conference coincided with a keenly awaited speech to university students by his reformist predecessor Mohammad Khatami, who used the occasion to attack the president's economic policy.

sgh-hif-aet-sjw/kir

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