Peace has 'never been closer' between the US and Iran, mediators declared on Friday, despite a leaked draft of the supposed deal sparking fury from Washington.

A final agreement 'has been achieved' and both sides must now simply 'complete the next steps', Pakistan's prime minister Shehbaz Sharif, who has hosted talks, said on Friday night. 

American officials briefed that both sides would meet in Geneva as early as Sunday to sign a memorandum of understanding to end the war.

But Tehran dismissed the reports as 'entirely false' and insisted the review process in Iran had not yet concluded.

Meanwhile, a leak from the Islamic regime's media purporting to have details of the 14-point agreement sparked chaos just as momentum towards peace appeared to build. 

Under the supposed terms, Iran would receive $300 billion (£224 billion) in damages as well as $12 billion (£9 billion) in sanctions relief.

It would also maintain control of the Strait of Hormuz, continue nuclear enrichment, and its terror proxies would remain in place.

Mr Trump was accused by allies of accepting a 'surrender deal' and used Truth Social to attack the leak as 'fake news', insisting it had 'NOTHING to do with the terms that were agreed to'.

He said: 'What they said, including their weak and pathetic statement on having a deal, bears no relation to the truth. Very dishonorable people to deal with.'

Vice President JD Vance also hit out at the alleged draft agreement, insisting that 'the Iranians are not receiving any cash' until they meet further requirements. 

Mr Vance, who had been due to fly to Geneva this weekend, said: 'The deal is structured to ensure that the US and its allies' concerns are prioritised, and that if the Islamic Republic of Iran meets its obligations, then economic benefits will flow to them'.

The White House has briefed that Iran has agreed to just five points: nuclear material will be destroyed, the nuclear program will be dismantled, money will be released contingent on this, the Strait will be reopened, Tehran will cease funding terror groups.

But Ayatollah Ahmad Alamolhoda, the supreme leader's representative in Razavi Khorasan province said Trump's declaration was 'as hollow as the ceasefire before it'.

However Abbas Aragchi, Iran's foreign minister, echoed Mr Sharif's words and said the memorandum 'has never been closer'.

Similarly a senior Trump administration official told NewsNation while there is no deal yet it is 'very close' and they are 'confident' it will be signed in days.

Mr Trump has now said 39 times that a deal is close.