Mohammad Arshad Manzoor Hussain, chairman of the International Atomic Energy Agency board, was recalled in December amid reports he did not vote in line with his government's wishes at an IAEA vote censuring Iran.

Malaysia, along with Venezuela and Cuba, voted against the November 27 IAEA resolution which demanded that Iran halt construction of a uranium enrichment site kept secret until recently.

"The ambassador's term is up in March and so it will not be renewed and we are hoping to replace him with another Malaysian envoy," Foreign Minister Anifah Aman told AFP.

"I am surprised that there is a perception that he is being fired because of what happened last year," Anifah added.

"Mohammad Arshad's contract was extended upon his retirement and that extension is ending in March so he should bow out gracefully to let younger diplomats have a chance to serve the country in international organisations."

The UN watchdog said Tuesday its 35-member board would convene a special meeting on Friday with the sole item on the agenda being the election of a new chairman.

Foreign ministry officials said Malaysia's new IAEA envoy, Muhammad Shahrul Ikram Yaakob, will be nominated to replace Mohammad Arshad as board chairman.

Chairmanship of the IAEA board routinely rotates between the different geographical areas, with the Southeast Asia and Pacific group now holding the seat.

Malaysia, a Muslim-majority nation, has previously denied any role in the illegal export of nuclear weapons to Iran, but last December confirmed the involvement of a national in the export of sensitive components.

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