Hossein Amir-Abdollahian, made the call in a tweet on Sunday referring to his latest meeting with British Ambassador in Tehran Robert Macaire.
"It is better for London to meet its deferred commitments," Amir-Abdollahian wrote on his Twitter account.
He added, "We had a frank and constructive conversation. The ambassador called for more negotiations with the Islamic Republic of Iran. I stressed that it would be better for London to fulfill its overdue obligations."
"Negotiation for negotiation is a repetitive and fruitless game. The two countries have great potential for cooperation," he noted.
Britain owes Iran around £450m after Mohammad Reza Pahlavi paid upfront for 1,750 Chieftain tanks and other vehicles, almost none of which were eventually delivered after the Islamic Revolution of 1979 toppled the US-backed leader, Iran Press reported.
The UK has since agreed to pay back some of the debt, but says it is unable to transfer the money because of international sanctions on Iran.
The amount was reportedly transferred to a bank account controlled by the High Court in 2002 but has not been passed on to Iran.
In 2019, a high court in Britain ruled that the UK does not have to pay the £20 million interest that has accumulated on a £400 million debt owed by the UK government to Iran.