The US and Iran will hold "direct talks" over a possible nuclear deal on Saturday, says Donald Trump, BBC reported.

The meeting has also been confirmed by Iran's foreign minister who said the talks would be "indirect" but could be "as much an opportunity as it is a test".

The US president on Monday said discussions between Washington and Tehran would be at "very high level" and warned it would be a "very bad day for Iran" if no agreement was reached.

Last month, Trump raised the prospect of military action against Iran after its supreme leader Ayatollah Ali Khamenei publicly rejected the offer of direct talks, according to BBC.