The source said language in the memorandum was still being finalized and Iran was sticking to its position that the deal must also end fighting in Lebanon, where Israel has been battling against the Hezbollah militia.
The aim was to finalize the wording by Saturday so the agreement could be signed by US Vice President JD Vance and Iran's Parliament Speaker Mohammed Baqer Qalibaf. No venue had been established but Geneva was emerging as the likeliest.
Trump said on Thursday he was calling off new strikes on Iran because the deal was now ready.
A senior Iranian source told Reuters that the draft would waive sanctions on Iran's oil, unfreeze billions of dollars of its funds, and require a cessation of hostilities on all fronts, including in Lebanon. Nuclear issues would be set aside for later talks.
