Iran denied earlier reports that it arrested an American woman on espionage charges, the local Arabic language satellite Al-Alam TV reported Thursday.

According to the report the Iranian border officials prevented her from entering the country via Armenia border due to her visa problem.

The American woman wanted to illegally enter Iran but she was prevented since she did not have a visa, the Al-Alam TV said, adding that she had been sent back to Armenia.

A local newspaper reported earlier on Thursday that Iran arrested a 55-year old American woman on espionage charges.

Farsi-language IRAN newspaper said the American woman who had set spying equipment in her teeth and entered Iran without visa via Armenia border was arrested by the security guards.

"The American woman whose name is Hall Talayan and had set technical spying equipment, microphone in her teeth was arrested by the (Iranian) customs guards in Nordouz (a town in northwestern Iran bordering non-Muslim state of Armenia)," the report said.

Currently, two detained U.S. hikers, Josh Fattal and Shane Bauer, are held in an Iranian prison over unlawful entry into Iran's territory and on espionage charges. Another female U.S. hiker Sarah Shourd, once jailed in Iran with another two U.S. hikers, was released by Tehran's prosecutor in September on bail of 500, 000 U.S. dollars due to her health situation.