Addressing the UN General Assembly yesterday, Cameron said Britain had "severe disagreements" with Iran but that Tehran "should also be given the chance to show it can be part of the solution, not part of the problem."
"Iran's leaders could help in defeating the threat from ISIL," Cameron said, referring to the Islamic State movement that has rampaged through Syria and Iraq.
"They could help secure a more stable, inclusive Iraq, and a more stable, inclusive Syria. And if they are prepared to do this, then we should welcome their engagement," Cameron said.
Cameron also made clear his criticisms of Iran, which has had tense relations with Britain and the United States since the 1979 revolution ousted the Western-oriented shah.
"We have severe disagreements - Iran's support for terrorist organizations, its nuclear program, its treatment of its people. All these need to change," he said.
Rouhani, a moderate in the regime, swept to power in elections last year on pledges to end Iran's international isolation.
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