Iran's latest proposal would set aside discussion of Iran's nuclear programme until the war is ended and disputes over shipping from the Gulf are resolved.
That is unlikely to satisfy the US, which says nuclear issues must be dealt with from the outset, and Trump was unhappy with Iran's proposal for that reason, a US official briefed on the president's Monday meeting with his advisers said, speaking on condition of anonymity.
A previous agreement in 2015 between Iran and multiple other countries including the US sharply curtailed Iran's nuclear programme, which it has long maintained is for peaceful, civilian purposes.
But that deal fell apart when Trump unilaterally withdrew from it in his first term in office.