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The UN's atomic watchdog has called on Iran to halt nuclear fuel development.
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The US administration has embarked on a series of face-to-face meetings with world leaders at the UN summit to try to isolate Iran diplomatically over Iran's push to expand its nuclear programme.
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Mr Ahmadinejad proposes "new solutions for getting out of international problems and the current fragile situation of the world", he said.
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US Secretary of State Condoleezza Rice said the US would join EU nations in talks if Iran suspended uranium enrichment and reprocessing work.
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Bush said Iran risks "further isolation" if it rejects the deal, which includes trade and security guarantees if Iran stops controversial nuclear work.
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In a leaked letter, the IAEA said a congressional report contained serious distortions of the agency's own findings on Iran's nuclear activity.
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The charges are on two fronts - the first concerns alleged Iranian activities in Iraq (and in Lebanon) and the second is about Iran's nuclear programme.
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War talk against Iran is rising again in Washington as the Bush administration enters its final months with little to show for its labors in the Middle East.
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He added that Iran was not obliged to inform UN nuclear watchdog the IAEA of plans to build more nuclear sites.
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The US replied one day after Mr Ahmadinejad was sharply critical of President Barack Obama for condemning Iranian violence against protesters.
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The plan would see international powers refine Iran's uranium in return for affirmation that Tehran will not produce nuclear weapons.
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Western powers accuse Iran of seeking to develop nuclear weapons - a charge Iran strongly denies.
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Iran's armed forces have shot down an unmanned US spy plane that violated Iranian airspace along its eastern border.
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Obama told The Atlantic magazine he was not bluffing by threatening US action if Iran built a weapon but that an early strike could win Iran sympathy.
