German Foreign Minister Guido Westerwelle on Wednesday said a UN report on Iran's nuclear drive was "alarming" and that new sanctions would be inevitable if Iran refused to participate in serious talks.
"The detailed signs concerning a possible military dimension of the Iranian nuclear programme are alarming," Westerwelle told reporters.
"If Iran continues to refuse to conduct serious negotiations on its nuclear programme, new, more severe sanctions would be inevitable," he said, adding that discussions with European partners and allies were underway.
But he said: "We rule out all discussion on a possible military option."
The International Atomic Energy Agency on Tuesday released reams of what it called "credible" intelligence suggesting Tehran had worked on developing nuclear weapons.
But Iranian President Mahmoud Ahmadinejad today said that his country "will not budge an iota" from its nuclear path.
Germany is one of six world powers, together with Britain, China, France, Russia and the United States, in stalled negotiations with Iran aimed at convincing Tehran to freeze its uranium enrichment activities.