Iranian authorities claim to have arrested an alleged spy working with MI6.
The semi-official ISNA news agency reported that the man was arrested in the town of Kerman in south-east Iran.
ISNA said Iranian authorities had spent months tracking the man down, and that he had exchanged information with British intelligence operatives.
There was no suggestion that the man was British, and Tehran has a history of announcing the arrest of people it claims are spying without releasing further details.
However, the news is potentially embarrassing at a time when relations between the UK and Iran had been improving. Better relations between Iran and the West has seen a deal reached over Iran’s nuclear programme.
Responding to the reported arrest a Foreign Office spokesman said: “We don’t comment on intelligence matters.”
ISNA quoted the head of Kerman Revolution Court, Dadkhoda Salari, as saying: “The spy was arrested after several months of complex intelligence activities.”
He was also reported to have said that the alleged spy had visited British intelligence officials 11 times, and had given them intelligence on each occasion.
“Under training and instruction of the intelligence officers, the spy has collected the information and transferred them to the source country of espionage,” Mr Salari was reported as saying.
ISNA also reported that the alleged spy is being tried and has confessed to his crimes.