Britain is considering with its international allies how to raise pressure on Iran over its nuclear programme, Foreign Secretary William Hague said on Wednesday.

Iran needs to change direction. We want a negotiated solution and have extended the hand of reconciliation to Iran time and time again, Hague told parliament.

We are prepared to have further talks but only if Iran is prepared to engage in serious negotiations about its nuclear programme without preconditions.

If not we must continue to increase the pressure and we are considering with our partners a range of additional measures to that effect, he added.

The U.N.'s nuclear watchdog said Tehran appeared to have worked on designing an atomic bomb and may still be conducting secret research.

(Reporting by Tim Castle and Adrian Croft; editing by Keith Weir)