Prime Minister Manmohan Singh on Wednesday met Iranian supreme leader Ayatollah Ali Khamenei and President Mahmoud Ahmadinejad during which they discussed Tehran's controversial nuclear programme, Afghanistan, tense situation in Syria and other key bilateral issues, including boosting of trade and economic ties.

Singh, who is here to attend 16th Summit of Non-Aligned Movement, met the President for nearly an hour and raised the issue of highly-tilted bilateral trade relations in favour of Iran and sought more access for Indian goods, including wheat and other items, government sources said.

The two leaders also discussed the nuclear issue and India expressed hope on the progress of P5+1 dialogue, the sources said.

"The Prime Minister hoped that recent negotiations will yield positive results in the interest of peace in the region," they said.

Both leaders reviewed the state of bilateral relations and the importance that both countries attach to strengthening the bilateral relations.

They agreed that there was great potential in strengthening economic relations and economic cooperation.

"The Prime Minister raised the issue of the need for Iran to import more from India to address the trade imbalance. In this regard resumption of exports of Indian wheat to Tehran was stressed by the Prime Minister," sources said.

They also agreed to 'facilitate trilateral and bilateral cooperation on Chabahar port, which could serve as an important port of trade and transit for Afghanistan and Cetral Asia'.

In a special gesture, the Iranian President also hosted a banquet after the meetings for Singh, the lone leader in the NAM Summit to get this honour. A dinner for all the other participating leaders will be hosted by Iran tomorrow.

In a rare meeting with a non-Muslim dignitary, Ayatollah Khamenei on Wednesday held discussions with Singh, with the former appreciating the progress made by India in recent years.

Khamenei recalls Gandhi-Nehru

Iran's supreme leader Ayatollah Ali Khamenei on Wednesday fondly remembered Mahatma Gandhi and Indian premier Jawaharlal Nehru in his first-ever interaction with Prime Minister Manmohan Singh here.

Official sources privy to the 40-minute meeting between the two said that Khamenei told Singh that he was deeply impressed by Gandhiji's brilliance and illuminating visage.

The 73-year-old Iranian leader, who holds near-absolute power, also recalled Gandhiji's 'heroic struggle' starting from his days in South Africa and leadership of the Indian freedom movement. Khamenei also spoke of Nehru's beliefs which he said flowed from Gandhiji's struggle, a source said.

The Iranian leader said these beliefs led Nehru to help create the Non-Aligned Movement. Khamenei also spoke of his own visit to India in 1981 and his meetings with then Prime Minister Indira Gandhi and the then External Affairs Minister Narasimha Rao.

Prime Minister Singh responded by expressing his appreciation for Iran's supreme leader's views. The meeting between the two leaders assumes significance since Khamenei rarely meets leaders of non-Islamic countries.