Paris: US President George W. Bush and French President Nicolas Sarkozy on Saturday sought to forge a common front against Iran, which insisted on continuing its nuclear work.

Iran on Saturday rejected a stop to nuclear enrichment despite an incentives offer by the world's major powers.

"I am disappointed that the Iranian leaders rejected this generous offer out of hand," Bush told a joint news conference with Sarkozy.

He said European leaders understood that a nuclear-armed Iran would be a "major blow to world peace."

Sarkozy agreed, saying: "Iran obtaining the atom bomb is unacceptable". He called for a "sanctions procedure" if Tehran remains defiant.

Iran denies trying to build a nuclear bomb and insists its programme is strictly for electricity generation.