"I do not confirm the entry of our forces into the territory of neighbouring countries, notably Iraq," government spokesman Gholam Hossein Elham told reporters.

"We have security cooperation accords with neighbouring countries and we act within the framework of these accords. There is no cause for concern over this kind of thing with neighbouring countries," he said.

On Sunday the Iraqi defence ministry said Iranian forces had entered Iraqi territory and were shelling Turkish-Kurdish Kurdistan Workers' Party (PKK) guerrilla positions.

The ministry said Iranian troops hit a border area called Haj Umran -- close to where the borders of Iran, Iraq and Turkey meet -- and then entered five kilometers (three miles) into Iraqi territory.

The shelling was the second military attack on the Kurdish guerrillas by Iranian forces in 10 days. The previous attack on April 20 left two guerrillas dead and another 10 wounded.

Iran is bound by treaty with Turkey to fight the outlawed PKK, which has waged a 15-year insurgency against Ankara for self rule in Turkey's mainly Kurdish southeast.

In return, Turkey has pledged to fight the Iranian armed opposition group, the Iraq-based People's Mujahedeen.