Iran says it is considering downgrading ties with Britain after days of rising tension over criticism of Iran's disputed presidential election.
Foreign Minister Manouchehr Mottaki was asked about the option of reducing diplomatic relations with London after a Cabinet meeting in Tehran.
"We are studying it," Mottaki said, according to state television.
Iran expelled two British diplomats Tuesday after bitterly accusing Britain of spying and fomenting days of unprecedented street protests over the vote.
Supporters of opposition candidate Mir Hossein Mousavi say the election, called for President Mahmoud Ahmadinejad, was tainted by massive fraud.