Azerbaijan denies Israel military presence during Iran drills
The Iranian claims about sworn enemy Israel come after state television last week showed tanks, howitzers and helicopters firing at targets in the north west of the country.
"We reject the allegations of any third party's presence near the Azerbaijani-Iranian border, such allegations are totally baseless," she said.
Azerbaijan's President Ilham Aliyev last week criticised the Iranian war games in an interview with Turkish news agency Anadolu, asking "why now, and why on our border?"
Israel came under diplomatic fire from Armenia during last year's conflict between the Caucasus neighbours.
Azerbaijan's decision to impose customs duty on Iranian truck drivers transiting to Armenia also fuelled tensions.
Tehran has long been wary of separatist sentiments among ethnic Azerbaijanis, who make up around 10 million of Iran's 83 million people.