"If Iran really shows goodwill, France and its partners are prepared to suspend the (sanctions) procedure in the Security Council," Alliot-Marie told reporters. "But the condition is that there be real progress."
She made the remarks after holding talks here with UN chief Kofi Annan.
France, Britain and Germany, with the support of the United States, are preparing to discuss with Russia and China the three European powers' proposed Security Council sanctions resolution against Tehran.
The resolution is expected to be submitted to the full 15-member council early next week.
Envoys of the three European powers, which spearheaded the abortive talks to convince Iran to stop uranium enrichment, would not discuss the details of the gradual sanctions being considered.
But officials in Washington said they were first likely to focus on banning the supply of material and funding for Iran's ballistic missile and nuclear programs. Other steps could include asset freezes and travel bans on nuclear and weapons scientists.
Iranian President Mahmoud Ahmadinejad on Friday reaffirmed Iran's refusal to back down over its nuclear program despite the threat of sanctions, saying it would not "tolerate the slightest pressure."
Iran ignored an August 31 deadline set by the Security Council to freeze uranium enrichment, a process that can be used to produce nuclear reactor fuel but also for bomb-making.
Tehran rejects US-led charges that it is seeking a covert nuclear weapons capability, insisting that its atomic program is entirely peaceful and aims to generate electricity.

Copyright AFP (Agence France-Presse), 2006