By David Brunnstrom

LUXEMBOURG, April 23 (Reuters) - A top EU official welcomed Uzbekistan's agreement to enter a human rights dialogue with the European Union as "a step forward" on Monday as the bloc studied plans for closer ties with energy-rich Central Asia.

Rights groups have urged the European Union to make sure rights take priority in its regional strategy and have called for no lifting of sanctions on Uzbekistan when they are reviewed in May, saying this could trigger further repression.

EU External Relations Commissioner Benita Ferrero-Waldner said it was too early to say what decision would be taken on the sanctions but welcomed Uzbekistan's readiness to discuss rights.

"I think this is at least one step forward," she told a news briefing, adding that she hoped to see the dialogue start before the May 14 sanctions review.

"It will be very important because it is the first time ever that such a human rights dialogue takes place," she said.

Ferrero-Waldner said it was important to engage with the region, stressing competition for influence with Russia and China.

The European Union restricted arms sales and banned visas for top Uzbek officials after forces quashed a revolt in 2005. Witnesses say hundreds of people, including women and children, were killed. Uzbekistan says most dead were armed insurgents.

Ferrero-Walder was speaking at a meeting of foreign ministers from the 27 EU states to discuss a plan by EU President Germany to boost ties with Central Asian countries, also including Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

A draft seen by Reuters notes the need for the EU to diversify energy supplies and for regular dialogue with Central Asia at foreign minister level.

It also calls for discussion on human rights and offers support for education as well as oil and gas exploration with a view to building new pipelines.

New York York-based Human Rights Watch said last week the European Union must make respect for rights an integral part of the strategy. It noted that if anything Uzbekistan had shown a hardening, not an improvement, in its stance.

After talks with EU ministers who visited Central Asia last month to promote the German plan, Uzbek Foreign Minister Vladimir Norov told the Europeans he was ready for more dialogue, but not lectures on human rights.

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