Top US and Israeli generals held talks at the Pentagon amid soaring tensions with Iran, according to Reuters citing sources.
US President Donald Trump has sent an armada to the region in preparation for a possible attack on Iran because of its suspected nuclear programme and Tehran's crackdown on riots last month.
Trump, meanwhile, reacted to a comment by Iran's supreme leader Ayatollah Ali Khamanei that any attack would trigger a regional war saying he hopes they can make a deal.
"Why wouldn't he say that," said Trump. "Of course you could say that, but we have the biggest, most powerful ships in the world over there, very close, a couple of days, and hopefully we'll make a deal.
"If we don't make a deal, then we'll find out whether or not he was right."
Tehran says it is ready for war, even refusing to accept a "symbolic" strike from the US.
Iran says it is willing to hold talks but without conditions, reminding that the last time the two sides prepared for negotiations, they were attacked by the US and Israel.