(RTTNews) - Senior Iranian and Israeli officials have met face-to-face at an Australian-initiated meeting of the International Committee on Nuclear Non-Proliferation held last month in Cairo, according to Israeli media reports released Thursday.

According to reports, Iran was represented at the nuclear non-proliferation conference by its ambassador to the IAEA Ali Asghar Soltanieh, while Meirav Zafary-Odiz, chief for policy and arms control for the Israel Atomic Energy Commission, attended the conference on behalf of the Jewish nation.

The meeting reportedly took place Sept. 29 and 30 at the Four Seasons Hotel in the Egyptian capital. If confirmed, it would be one of the few direct official contacts between the two countries for decades. Reports indicated that representatives of Iran and Israel traded accusations regarding each others nuclear programs at the conference.

Apart from Israel and Iran, representatives from the Arab League, Jordan, Egypt, Tunisia, Turkey, Morocco, the United Arab Emirates and Saudi Arabia, along with European and American officials, reportedly attended the conference.

Israeli officials confirmed that diplomats from both Iran and Israel had participated in last month's Cairo conference, but stressed that there was no "face to face discussion" between the representatives of the two countries.

Meanwhile, Iranian officials rejected the reports, stating that the Islamic Republic does not recognize Israel and considers it responsible for the insecurity in the Middle East and for "the daily killing of the Palestinian women and children."

"The reports in this regard are sheer lies and there has been no meeting in Cairo," Iranian state television quoted Ali Shirzadian as saying on Thursday. "This lie is a kind of psychological operation designed to affect the constant success of Iran's dynamic diplomacy in the Geneva and Vienna meetings."

The reports came just a day after International Atomic Energy Agency (IAEA) chief Mohamed ElBaradei handed over a draft proposal aimed at reducing international concerns over Iran's disputed nuclear policy to diplomats from France, the U.S., Russia and Iran after three days of tense negotiations involving the four countries at the UN nuclear watchdog's headquarters in Vienna. The four countries have until Friday to reply to the IAEA proposal.

Though the details of the proposal are yet to be disclosed, news reports indicated that the proposal calls for shipping the low-enriched Iranian uranium to Russia for further enriching, and then to France for converting the material into actual fuel for a medical-purpose reactor in Tehran.

An agreement to process low-enriched Iranian uranium in a third country is widely seen as an amicable solution to the issue as it would give Iran the nuclear fuel it requires to run its research reactor, while providing guarantees to the West that Tehran will not have enough nuclear material to convert into finer grade Uranium used to make nuclear weapons.

The negotiations hosted by the IAEA in Vienna were aimed at persuading Tehran to halt its controversial nuclear program. The talks were expected to make advances on the agreements reached at a previous round of negotiations between Iranian officials and representatives of Britain, China, Russia, U.S., France and Germany, in Geneva earlier this month.

Iran had agreed at the Geneva talks in early October to allow officials from IAEA to visit and inspect its recently revealed second uranium-enrichment facility. It was also agreed in principle to transport some of the low-enriched uranium produced in Iran to a third country --France and Russia-- for further enrichment and transformation into fuel for use in Tehran research reactor, which produces isotopes for medical applications.

The Vienna talks follows serious efforts by the United States and its allies to persuade Russia and China to back them in enforcing further sanctions on Iran if diplomatic efforts fail to convince Tehran to roll back its nuclear weapons program.

Though Iran insists that its nuclear program is intended for peaceful civilian power generation purposes only, the West suspects that it is just a cover up for the Islamic country's nuclear weapon ambitions. The Islamic country has already survived three sets of sanctions imposed on it by the UN Security Council following its failure to halt nuclear development work.