MORE talks are taking place to free the British hostages in Iran.

As families across the UK waited anxiously, British diplomats met top officials in Tehran.

And there was optimism in Westminster that the crisis - now in its 13th day - could be resolved.

In Huddersfield, relatives and friends of Leading Seaman Chris Coe, 31, were waiting to hear.

Fresh pictures released by Iran showed a group of the hostages playing chess, among them the Dalton seaman.

Mr Coe, a sailor since 1993, was captured on March 23 after joining in a small boat patrol from the HMS Cornwall, a frigate on duty in the Persian Gulf.

Mr Blair's positive reaction follows talks between Foreign Office Minister Lord Triesman and the Iranian ambassador in London last night - their eighth meeting since the Royal Navy sailors and Royal Marines were seized on March 23.

A Downing Street spokeswoman said: "There have been further contacts between the United Kingdom and Iran, including directly with chief negotiator Dr Ali Larijani.

"On the basis of these, the Prime Minister believes that both sides share a desire for an early resolution of this issue through direct talks.

"The Prime Minister remains committed to resolving this by diplomatic means.

"The UK has proposed direct bilateral discussions and awaits an Iranian response on when these can begin."

The positive signals emerged just hours after Foreign Secretary Margaret Beckett sought to play down the chances of an early end to the crisis.

Syria is believed to be involved in the mediation.

A spokesman said: "This solution needs quiet diplomacy and Syria is now undertaking such quiet diplomacy between the two countries.

"We hope for a satisfactory solution that will lead to resolving the crisis of the British service personnel held captive in Iran."

Leading Seaman Coe, a former student at Rawthorpe High School, has been in the Royal Navy since 1993.

He and the others were seized when they left the HMS Cornwall to check on small boats in the northern Persian Gulf.

His family home is in Dalton, with dad Stephen and mum Christine.

They told yesterday of their pride in their son and their wish that he would be home soon.

A new photograph of Leading Seaman Coe was released by his family yesterday, as Iran issued more pictures of the captured personnel.

One shows a group of the hostages playing chess and laughing.

Foreign Secretary, Margaret Beckett said the Government was still waiting for a response to a formal note it delivered last week to the Foreign Ministry in Tehran.

Despite earlier comments from Mr Blair that the next 48 hours would be "critical" in determining whether there could be a diplomatic solution, Mrs Beckett insisted the Government was not expecting to see them released within that time.

"I would urge you to be cautious in assuming that we are likely to see a swift resolution to this issue," she said.

Mrs Beckett also sought to scotch any suggestion that Britain was considering military action after the Prime Minister spoke of "increasingly tougher decisions" if diplomacy was not working.

"We are not seeking a confrontation. We are seeking to pursue this through diplomatic channels," she said.

Dr Larijani, the head of Iran's Supreme National Security Council, gave the first indications of a softer tone yesterday when he gave an interview to Channel 4 News saying Tehran hoped to see a diplomatic solution.

Mr Larijani, the most senior Iranian official to become involved in the stand-off, made clear that Tehran wanted to see the issue resolved at a government-to-government level.

Despite the signs of movement in Tehran with Mr Larijani's involvement, Mrs Beckett said that officials at the British embassy were still being denied consular access to the captives or information about where they are being held.

The latest still pictures released by the Iranian Fars News Agency showed some of the detainees - including Leading Seaman Faye Turney - dressed in tracksuits and sitting together smiling.

In one picture the men are playing chess. The caption said: "It seems the sailors are satisfied with their situation, in which they are enjoying good conditions instead of working in a hard situation in the Persian Gulf."