Diplomats say that the escalation is not as big as feared, and involves installation of clusters of centrifuges, the machines that enrich uranium, at both its underground enrichment sites.
In recent months, multiple top Iranian officials have threatened the West that it might publicly decide that nuclear weapons are not prohibited by Islam.
The European Union and the United States added new sanctions against Iran on Friday after its repeated supplies of weaponry to Russia and terror groups in the Middle East.
The US spends an estimated $1 billion each year on uranium from Russia.
Iran says its aims are entirely peaceful and it has the right to enrich to high levels for civil purposes.
IAEA chief Grossi has expressed growing concerns over Iran's nuclear safety protocols in place.
Under a defunct 2015 agreement with world powers, Iran can enrich uranium only to 3.67%.
American physicist David Albright stated that “Iran could also immediately start preparatory work on transforming the weapon-grade uranium into nuclear weapon components.
One of the officials said that the coming aid package will be worth between $240 million and $375 million depending on what is included.
After Washington ditched the nuclear deal in 2018 and reimposed sanctions, Tehran began to violate the nuclear curbs set out in the pact.