Khatami, whose term in office ended this week, said in an interview with international Arabic daily al-Hayat, that mediation between Tehran and Washington will be futile in the absence of goodwill on both sides.
"Unfortunately, there is an initial decision on both the Iranian and the Americans sides not to improve relations between them," Khatami said.
"In Iran, the people are suspicious of America and believe that any rapprochement would harm national interest in view of the bad record the Americans have in Iran."
"Also in America, many believe that Iran is a revolutionary country that seeks to expand an Islamic democracy and eliminate foreign bases in the region," Khatami said.
"As such, there is crisis of confidence and policies on both sides are based on avoiding any rapprochement."