"A saboteur gang which was equipped and organised by foreign intelligence services was dismantled last night," deputy Kermanshah governor Hojatollah Damyad said.

"In last night's clashes, some of these counter-revolutionary elements were killed," he said, adding that the fighting took place in an area between Ravansar and Kamyaran, about 100 kilometres (60 miles) from the Iraqi border.

Damyad said the group, which had been formed to "create insecurity and discontent in the region and block the government's services to the people" was stopped before it could carry out any operations.

Iran's Kordestan, Kermanshah and West Azarbaijan provinces, which have substantial Kurdish populations, have been the scene of clashes between Iranian forces and Kurdish separatist militants of the Party of Free Life of Kurdistan or PJAK.

PJAK, which is linked to the Kurdistan Workers' Party (PKK) fighting the Turkish army, has been behind a string of deadly attacks in northwest Iran in recent months.

Tehran has repeatedly accused the United States of seeking to stir up ethnic unrest by providing material support to PJAK and outlawed rebel groups in other sensitive border regions.