The Government today accused Iran of a "long line of slurs" amid claims four people with links to Britain had been arrested.
Iran claimed it had arrested four people suspected to be members of a British-linked terror cell blamed for at least five killings since 2008.
But a Foreign and Commonwealth Office spokeswoman dismissed the report as "baseless".
She said: "The UK does not support or encourage terrorist activity in Iran, or anywhere else in the world, and this claim will be seen as what it is: another in a long line of slurs against the United Kingdom from the government of Iran."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies