Iranian President Mahmoud Ahmadinejad said on Wednesday that Iran is ready to start talks on nuclear fuel swap in late August, the semi-official ISNA news agency reported.

"The fuel swap suggestion is still on the table, the Iranian government has (already) declared that it is ready for talks from late August," Ahmadinejad was quoted as saying.

Ahmadinejad, addressing a crowd in Iran's Western city of Hamedan, criticized the West which sanctions Iran while talking about negotiations.

According to the report, Ahmadinejad called for a change in the U.S. policies, saying U.S. President Barack Obama relies on " Zionists" instead of his country and has lost great opportunities to improve ties with Iran.

On Monday, Iranian Foreign Minister Manouchehr Mottaki welcomed a proposal by International Atomic Energy Agency (IAEA) Director General Yukiya Amano to hold talks with the Vienna Group on the nuclear issue, the semi-official Fars news agency reported.

Earlier in July, Iran submitted a letter to the IAEA, saying it is ready to start talks over providing fuel for Tehran's reactor with the Vienna Group which includes the United States, France, Russia and the IAEA.