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US President Barack Obama has told the Iranian people that a deal to transform the relationship between the two countries could be within reach, the BBC reported.

"We have the best opportunity in decades to pursue a different future between our countries," he said in a video message for Persian New Year.

Six world powers are negotiating a deal aimed at limiting Iran's nuclear activity, with a March deadline near.

The president conceded there were still "gaps" in negotiations but was hopeful.

"This moment may not come again soon," said Mr Obama in his message celebrating Nowruz.

"I believe that our nations have an historic opportunity to resolve this issue peacefully - an opportunity we should not miss."

If Iran's leaders agreed to a reasonable deal, then the country would be on a path to prosperity, he said.

Isolation awaited if agreement was not reached, he added.

But the president has yet to convince the US Congress of the merits of a deal, and many lawmakers remain opposed to the easing of sanctions.