Turkish media claimed the Iranian envoy to Turkey was evacuated after the threat was made.
However, the Iranian ambassador called these claims false and a complete fabrication.
Ambassador Mohammed Ebrahim Teherian Fard said: “The suicide attack against the embassy was only a threat.
“Nothing significant has happened and things are under control.”
According to Iranian state media IRNA, Mr Fard said: “The threat was made by someone who introduced himself as linked to Daesh.”
Iran’s Foreign Ministry posted a statement on their website in response to the claims.
It said: “Such a claim is a sheer lie, and the personnel at our embassy are present at their workplace in full health and security.”
The DHA news agency said on Monday that the Iranian embassy was sent intelligence revealing that there was a potential suicide bomb threat.
Soon afterwards, roads leading to the embassy were closed off and police searched cars in the area.
In response to the intelligence, Ambassador Fard said that Turkish police had “intensified security measures” around the embassy.
In 2015 and 2016, there were multiple terrorist attacks in Turkey.
All of these attacks were blamed on Kurdish militants and ISIS fighters.
The most recent attack on New Year 2017, when a gunman killed 39 people in an Istanbul nightclub, was blamed on ISIS.
Earlier this year, a military parade in the Iranian city of Ahvaz was attacked by several gunmen, which resulted in the deaths of 25 people and a further 60 people were injured.
The anti-government Arab Group Ahvaz National Resistance and ISIS took responsibility for the attack.