Iran's foreign minister said Tuesday that nuclear fuel swap can build trust for all sides involved, the local satellite Press TV reported.

Nuclear fuel swap deal can provide an opportunity for confidence-building over Tehran's nuclear energy program between Iran and West, Manouchehr Mottaki said according to the report.

"We think that if the other sides have a true will to materialize the nuclear swap deal, it can become a multilateral confidence building measure for all sides," Mottaki was quoted as saying at a press conference in Tehran.

Iran's nuclear activities have been "totally transparent" and under the full supervision of the International Atomic Energy Agency (IAEA), Mottaki reiterated, emphasizing that a solution to Iran's nuclear issue could only be found through diplomacy.

Under a draft deal brokered by the international nuclear watchdog IAEA, most of Iran's existing low-grade enriched uranium will be shipped to Russia and France, where it will be processed into fuel rods with a purity of 20 percent. The higher-level enriched uranium will then be transported back to Iran.

Iran has urged for the simultaneous swap of the fuel within its territory.