New York, Sep 24 (RIA Novosti) Russia and the US have agreed to resolve the Iranian nuclear issue through diplomatic efforts, but new sanctions still a possibility if Iran does not respond.

Russian President Dmitry Medvedev said he and his US counterpart Barack Obama had given full attention to Iran's nuclear dossier at their meeting and that Russia was ready to continue cooperation with Washington on Iran's nuclear issue.

'Our task is to create a system of incentives that would allow the peaceful use of nuclear energy by Iran on the one hand, and would rule out the creation of nuclear weapons on the other,' Medvedev said after the meeting.

'Russia's position is quite simple: sanctions rarely produce a positive result, but sometimes they are inevitable,' he said.

'This should be resolved diplomatically and I am on record as being committed to negotiate with Iran in a serious fashion to resolve this issue,' Obama said in his turn.