'The first option and most important option is diplomacy,' Bush said in Sun City Centre, Florida.
'I believe we can accomplish this diplomatically,' he added.
Bush's remarks came as high-level discussions took place among top members of the UN Security Council and Germany in New York over how to address Iran's nuclear ambitions.
The United States, along with Britain, France and Germany, want a Security Council resolution that would allow sanctions or even military action if Iran fails to halt uranium enrichment and come clean about its nuclear programme.
China and Russia are reluctant to take tough measures against Iran, but all of the countries agree Tehran should not be allowed to develop nuclear weapons.
The United States is concerned Iran is using a civilian nuclear energy programme to develop atomic weapons, a charge Iran denies.
'The Iranians should not have nuclear weapons or the capacity to make nuclear weapons,' Bush said.
'We're now working on the tactics as to how to convince the Iranians to get rid of their ambitions through a united front,' Bush said.
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