Iranian President Mahmoud Ahmadinejad on Sunday ordered the Atomic Energy Organization of Iran (AEOI) to start work on enriching uranium to a purity of 20 percent, the Mehr news agency reported.

However, Ahmadinejad said Iran is still ready for exchange of nuclear fuel with world powers, the report said.

The Iranian president made the announcement in his speech at an exhibition of Iran's laser technology achievements, which was also attended by AEOI chief Ali Akbar Salehi, who is also Iran's vice president.

"Mr. Salehi, you start 20 percent enrichment and at the same time we are ready to negotiate for exchange of fuel," Ahmadinejad was quoted as saying.