IAEA and Iran to draw up plan on atom issues

VIENNA (Reuters) - The U.N. nuclear watchdog director said on Friday he and Iran's chief negotiator had agreed to draw up a plan within two months on how to resolve questions about Iran's disputed nuclear programme.

But while International Atomic Energy Agency director Mohamed ElBaradei described the two-hour meeting with Ali Larijani as "quite satisfying" and Larijani spoke of "good progress", they reported no breakthrough in the core dispute -- Iran's defiance of U.N. demands to stop uranium enrichment.

Larijani will go on to a meeting with EU foreign policy chief Javier Solana in Lisbon on Saturday, seen as the last chance to overcome a standoff over Tehran's nuclear defiance before world powers start drafting tougher sanctions against it.