Leaders from Iran, Turkey, and Brazil have opened their talks on a nuclear fuel swap deal which was agreed upon by the three sides on Sunday, local TV reported.

The agreement was expected to be signed by the three leaders on Monday, Iran's al-Alam TV reported.

Turkish Foreign Minister Ahmet Davutoglu said on Sunday that Iran had agreed to a nuclear fuel swap plan to avoid new sanctions over its controversial nuclear program.

The minister made the announcement after talks in Tehran with his Iranian and Brazilian counterparts Manouchehr Mottaki and Celso Amorim over "a common formula regarding uranium exchange."

The United States has been pushing for a fourth round of UN sanctions on Iran. Turkey and Brazil, both non-permanent members of the UN Security Council, objected to sanctions and have been mediating an agreement on a fuel swap plan.

The nuclear swap plan calls for Iran to hand over its 3.5-percent enriched uranium to other countries in exchange for 20-percent uranium needed for nuclear reactors and for medical purpose.