The proposal also envisioned an end to the U.S. naval blockade but did not address further steps regarding Iran's nuclear program, according to American and Iranian officials familiar with the negotiation details.
Iran has repeatedly rejected American proposals to suspend its nuclear program and hand over its stockpile of highly enriched uranium.
It is now unclear exactly why Trump is dissatisfied with the proposal, but he has repeatedly emphasized that Iran cannot have nuclear weapons, The New York Times noted.
Accepting this proposal could look like denying Trump a victory, an American official also noted.
The White House refused to comment on Trump's position, but officials noted that discussions regarding the war and Tehran's uranium enrichment efforts will continue, the publication wrote.
Iran handed over a new peace plan to the U.S. that envisions opening the Strait of Hormuz and ending the war, Axios reported earlier. At the same time, Tehran proposes postponing negotiations on its nuclear program to a later date.
The proposal, which Iran passed to the U.S. through Pakistani intermediaries, is aimed at resolving the crisis surrounding the Strait of Hormuz and the American blockade, according to Axios data.
Tehran proposed that Washington extend the truce for a long term or achieve a final end to the war, and begin negotiations on the nuclear program after opening the Strait of Hormuz and lifting the blockade.
The White House received the proposal, but it is currently unknown whether the U.S. is ready to consider it, the publication noted.
Trump canceled the trip of U.S. Special Envoy Steve Witkoff and his son-in-law Jared Kushner to Pakistan for negotiations with Iran on April 25.
There is no point for the American delegation to fly 18 hours to Pakistan since the U.S. "holds all the cards" in the war with Iran, he explained.
Trump announced that at Pakistan's request, he extended the ceasefire and truce with Iran until Tehran's representatives present their proposal for a peaceful settlement on April 21.
Tehran does not recognize the extension of the ceasefire announced by the U.S. and will act in accordance with its own interests, Iranian state media later reported.
A truce in the war with the United States will "make sense" only on the condition of ending the "naval blockade" and ending Israel's "belligerent actions," Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated on April 22.