"We are sure that he will backtrack on his statements as was the case in the past. It is propaganda for internal Iraqi consumption," Iranian government spokesman Abdollah Ramezanzadeh said.

Shaalan said earlier the "source of terrorism in Iraq is Iran".

"Iran is the most dangerous enemy of Iraq and all Arabs," he said.

The two countries fought a brutal eight-year war from 1980 under then Iraqi leader Saddam Hussein, and lingering tensions remain, with many Iraqis still convinced that Iran is trying to undermine their country.

"We are used to these kinds of accusations and the Iraqi government knows very well that Iran is doing its best to help establish security in Iraq," Ramezanzadeh said.

"The end of (US-led) occupation and blind violence are top priorities in Iraq," Ramezanzadeh said, adding that plans to hold "free elections on time and as soon as possible" in Iraq were the best means to meet this goal.

Iraq is planning elections on January 30.