U.S. President Donald Trump has proposed negotiations on a new nuclear deal with Iran, giving Tehran a two-month deadline to reach an agreement, according to sources familiar with the matter cited by CNN and Axios.

Trump's Middle East envoy Steve Witkoff delivered a letter to the President of the United Arab Emirates Mohamed bin Zayed Al Nahyan during a visit to Abu Dhabi last week, with the UAE subsequently passing it on to Iranian officials. The letter outlined Trump's desire to resolve the dispute over Iran's nuclear program diplomatically, warning of consequences if Iran rejects the offer and continues advancing its nuclear activities, sources told Axios.

It remains unclear whether the two-month deadline begins from the time the letter was delivered or when negotiations start. However, if Iran rejects Trump's outreach and fails to negotiate, the chances of U.S. or Israeli military action against Iran's nuclear facilities would dramatically increase, sources told Axios.

Iran's nuclear program has advanced over the past four years, bringing it closer to producing a nuclear weapon. The International Atomic Energy Agency reports that Iran's stockpile of 60% enriched uranium is sufficient for six nuclear bombs if enriched to 90%. Iran, however, denies pursuing nuclear weapons.

In a statement to CNN, National Security Council spokesman Brian Hughes said, “President Trump made it clear to Ayatollah Khamenei that he wanted to resolve the dispute over Iran’s nuclear program diplomatically – and very soon – and if this was not possible, there would be other ways to resolve the dispute.”

Trump also discussed the matter with Russian President Vladimir Putin during a phone call on Tuesday. According to a White House readout, the two leaders "spoke broadly about the Middle East as a region of potential cooperation to prevent future conflicts" and "further discussed the need to stop proliferation of strategic weapons." The readout also noted that Trump and Putin "shared the view that Iran should never be in a position to destroy Israel."

Earlier this month, Trump told Fox News that there were "two ways Iran can be handled: militarily, or you make a deal. I would prefer to make a deal, because I’m not looking to hurt Iran." He added that the U.S. is "down to the final moments" with Iran, warning, "We can't let them have a nuclear weapon. Something is going to happen very soon. I would rather have a peace deal than the other option, but the other option will solve the problem."

Before the letter was delivered to the Iranians, the White House briefed several U.S. allies, including Israel, Saudi Arabia, and the UAE, about its contents, sources told Axios. The letter was described as "tough," proposing negotiations on a new nuclear deal while warning of consequences if Iran rejects the offer.

Khamenei dismissed the letter as "a deception" aimed at creating the impression that Iran refuses to negotiate. Nevertheless, the Iranian mission to the UN issued a statement on X, leaving the door open to talks if the objective is to address concerns about the militarization of Iran's nuclear program. However, it rejected any negotiations aimed at dismantling Iran's "peaceful nuclear program."

As tensions mount, Trump warned on Monday that any further attacks by Yemen's Houthis would be considered as emanating from Iran and threatened "dire consequences." Iran has denied controlling the Houthis.

National Security Adviser Mike Waltz reinforced Trump's position, stating that Iran must "hand over and give up" all elements of its nuclear program, including missiles, weaponization, and uranium enrichment, or face "a whole series of other consequences."

Iran's Foreign Ministry said earlier this week that Trump's letter is still under review and a response is being drafted.