"The International Atomic Energy Agency has said Turkey could serve as the center for the exchange of uranium ... but there is no agreement up until now," he said at a press conference in the Qatari capital Doha.
"If Turkey is chosen, it will do what it is asked to do," Erdogan said, adding that Ankara has been trying for several months to help resolve the crisis over Iran's controversial nuclear program.
Erdogan was due to hold talks with US Secretary of State Hillary Clinton who arrived in Doha on the first leg of a Gulf tour focused on the Iranian nuclear program and US calls for a fourth round of UN sanctions against Tehran.
Turkish Foreign Minister Ahmet Davutoglu, whose country has good ties with Tehran and has repeatedly offered to serve as mediator, is expected to visit Iran in the coming days to push for a diplomatic solution.
Iran, which rejects accusations of seeking to build a nuclear bomb, said last Tuesday that it has started the process of producing 20 percent enriched uranium, defying Western threats of fresh sanctions.
The move coincides with Western efforts for Iran to commit to an UN-drafted proposal for it to ship its low-enriched uranium (LEU) abroad in return for nuclear fuel from France and Russia for a Tehran medical research reactor.
Although Iran has said it is ready "in principle" to sign on to the proposal, it insists that not all its LEU be shipped out in one go as world powers are demanding.
"The (Western) proposal is still valid ... We believe there is still an important chance" for peace, Davutoglu said last week.
Turkey, NATO's only member that neighbors Iran, insists the row should be resolved through dialogue, arguing that economic sanctions or military action against Iran would have a damaging impact on the whole region.
In Washington, US Vice President Joe Biden said the United States expects to gain China's support for imposing sanctions on Iran over its nuclear program.
"We have the support of everyone from Russia to Europe. And I believe we'll get the support of China to continue to impose sanctions on Iran to isolate them, to make clear that in fact they cannot move forward," Biden said on NBC's "Meet the Press" program.
Western powers, led by the administration of President Barack Obama, are seeking new UN sanctions against Iran over its expanding nuclear program, but China has remained cool to the idea of tougher steps against the big oil supplier.
Acknowledging China's reluctance, Jim Jones, Obama's national security adviser, told the "Fox News Sunday" program: "We need to work on China a little more. On this issue they cannot be nonsupportive." Jones also told CNN: "China ... has been extremely good with us on North Korea in terms of sanctions ... I would have to think that as a responsible world power, that China will apply the same standards on proliferation in the Middle East." China, as one of the five permanent members of the UN Security Council, is a linchpin for any new package of sanctions on Iran, which denies Western assertions it is seeking nuclear weapons and insists its program is for peaceful purposes.
Biden was also dismissive — as was the White House last week — of Iranian President Mahmoud Ahmadinejad's recent boasts about Tehran's nuclear advances.
"It is not a nuclear power. I can understand why Ahmadinejad would make that assertion to divert the world's attention from the abuse of the civil liberties and civil rights of the people of Iran," Biden said, referring to Tehran's crackdown on anti-government unrest.
"The progress that Iran has made on the nuclear front is greatly exaggerated in my view," Biden said.
Ahmadinejad said on Thursday that Iran was close to enriching uranium nearly pure enough for atomic bombs, but reiterated it was not interested in acquiring nuclear weapons.
