NEW YORK (CNN) -- The United Nations' chief weapons inspector in Iraq told the U.N. Security Council Thursday that Iraq has placed new limits on inspectors' access to potential weapons sites.

Butler said Iraq has refused three times over the past month to let inspectors monitor sites they have already inspected, a stance that goes beyond limits on inspections announced previously by the Iraqi leadership.

On August 5, Iraq said it would no longer cooperate with U.N. inspection teams, effectively stopping any new inspections. But the Iraqis said at that time that they would continue to allow monitoring of previously inspected sites.

"We are carrying out the monitoring that Iraq is allowing us to carry out," Butler told reporters after briefing the Security Council. "It is less than the whole monitoring program. We are doing no disarmament work."

Butler's report came as the Security Council is considering a draft resolution submitted by Britain and the United States that would punish Iraq for not cooperating with inspectors.

The resolution calls for suspension of regular reviews of the sanctions imposed on Iraq after its 1990 invasion of Kuwait. Those sanctions, including an oil embargo, can't be lifted until U.N. weapons inspectors certify that Iraq has destroyed all of its nuclear, chemical and biological weapons, as well as any ballistic missiles.

If the Anglo-American resolution were to pass, it would effectively end Iraq's chances, already slim, of having sanctions lifted anytime soon.

While the Security Council has branded Iraq's decision to suspend cooperation with inspectors "totally unacceptable," it has so far taken no substantive action to punish Iraq. The resolution to suspect sanctions reviews could come before the council for consideration next week.

Reuters contributed to this report.