Malaysian Foreign Minister Syed Hamid Albar said today that diplomacy was the best solution to the crisis over Iran's nuclear program.

Malaysian Prime Minister Abdullah Ahmad Badawi held brief bilateral talks today with Iran's President Mahmoud Ahmadinejad on the sidelines of a summit of eight large Muslim countries on Indonesia's resort island of Bali.

"We always believe that dialogue is the best way," Syed Hamid told reporters after the two leaders' meeting. "A diplomatic solution is the best solution. We should not create another crisis."

Iran insists that its nuclear program is a peaceful effort to generate electricity but Western nations led by the United States suspect Tehran is pursuing the capability to make nuclear weapons.

Economic sanctions

The United States and European Union troika of Britain, France and Germany are pushing for a binding United Nations resolution that could clear the way for economic sanctions and possible military action.

They are meeting resistance from China and Russia, however, which both have close economic ties with Iran.

Badawi and US President George W Bush spoke earlier this month and also agreed on the need to end the crisis through diplomacy, though the United States has not ruled out eventually taking military action.

Malaysia is the current chair of the 57-nation Organisation of the Islamic Conference, the world's biggest Muslim grouping.