"We have engaged the UAE on this topic because we think it is an important way for countries in the region to potentially realize peaceful uses of nuclear energy," department spokesman Sean McCormack said during a news briefing.

McCormack said the two countries have a "common understanding about a text," but many more steps before an agreement is in place.

The United Arab Emirates and the United states have worked closely on different issues, McCormack said, "and they've demonstrated that they are a very responsible partner in a number of different areas."

In February 2006, the Bush administration was taken to task for the sale of port management businesses in six U.S. seaports to Dubai Ports World, with congressional critics wondering whether such a sale would compromise port security.

When told that one lawmaker reportedly introduced legislation that would effectively bar civilian nuclear technology discussions with the UAE, McCormack said Congress was being consulted and has a key role to play in the discussions.

"And in terms of any discussion, you know, I guess the only thing we can do is urge a rational, factual, informed discussion, you know, about this or any other matter related to the UAE," he said.