Separately, the United States refused to ease its economic sanctions on Iran, imposed fresh ones created to choke off the smuggling of Iranian oil and rebuffed, but did not rule out, a French plan to give Tehran a $15 billion credit line, according to Reuters.
The French reportedly have proposed the relief to the Iranians in exchange for the regime adhering to the stipulations of the 2015 nuclear deal.
Rouhani said at a press conference that Iran will lift the limits on the country's nuclear research and development activities set by the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action, according to Tehran-headquartered Press TV.
Rouhani on Tuesday ruled out any bilateral discussions with the United States, saying Iran would talk to the USA government only as part of multilateral negotiations after all sanctions are lifted and the administration returns to the nuclear deal.
USA sanctions imposed after President Donald Trump withdrew America from the deal have curbed Iran's oil exports and sent its economy into freefall while what was left of the deal steadily unraveled.
His statements were followed shortly by an announcement by Rouhani that Tehran will further reduce its commitments to the nuclear deal.
"This step is the most important step we have taken and its effects will be great and, God willing, with this step [Iran's] Atomic Energy Organisation will accelerate processes", he said. US officials have repeatedly said they do not believe Instex will get off the ground, but Sondland's comments left open the possibility that Trump could accept Macron's proposal.
Hawks within the Trump administration adamantly oppose any easing of strain, saying their objective shouldn't be exclusively to comprise Iran's nuclear programme however to curb the clerical state's affect throughout the Center East.
Rouhani indicated that after Friday's deadline expires and Iran takes the next step, another two-month deadline to Europe will follow with the aim to resume talks.
Iran Deputy Foreign Minister Abbas Araqchi appeared to condone the French proposal on Wednesday. Purity of 20% is considered an important intermediate stage on the road to producing the 90% pure fissile uranium needed for an atomic bomb.
Soon after, Iran's English-language Press TV issued a short report stating: "Iran has rejected a $15bn loan offered by European Union", without giving further details.
In addition to that the Europeans have attempted for more than a year to set up the Instex trade mechanism, but it is still not operational.
Under the nuclear deal, Iran has been limited to operating 5,060 older-model IR-1 centrifuges.
European officials until now have said that conforming to Paris-based FATF rules was not a prerequisite for Instex, although it would facilitate its establishment.
The diplomat, who spoke on condition of anonymity, said such a move would "make the (mediation) work more complicated", but said France would remain engaged with Tehran to try promote dialogue.
He criticized as "regrettable" Europe's call for the US's approval of the European measures to save the nuclear agreement.
Government spokesman Ali Rabie said Iran would stick to its nuclear commitments "if France can get the approval of the U.S. and announces it".