The government of Bahrain has ordered the expulsion of senior Iranian diplomat over his alleged connections to a Kuwaiti spy ring, according to state-controlled media.
Hujatullah Rahmani must depart within 72 hours.
In reaction, Iran's foreign ministry declared it reserves the right to a reciprocal reaction.
The action taken by the Bahrain foreign ministry aims to divert attention and neglect the realities... these kinds of baseless accusations are contrary to good neighborly relations, Ramin Mehmanparast, a spokesman for Iran's foreign ministry said.
Last month, the emirate of Kuwait deported three Iranian diplomats, also over alleged links to a spy ring.
Tensions between Bahrain and its neighbor across the Persian Gulf have been simmering for weeks since protests by Bahraini
Shia Muslims against its Sunni Muslim rulers erupted.
Iran, a Shia power, has sharply criticized the Bahraini leadership of inviting troops from Saudi Arabia (a Sunni giant) to quell disorder in Bahrain, likening it to a “foreign occupation.”
Last week, Bahrain's foreign minister Sheikh Khaled bin Ahmad al-Khalifa declared that the Saudi-led troops would stay indefinitely, according to the Associated Press.
Bahrain has accused Iran for fomenting the unrest within its borders.
Bahrain also urged Iran end its irresponsible actions, which constitute a grave violation of the norms and principles governing international relations and a threat to regional security and stability.
Iran said that while it gives moral support to the Bahraini demonstrators, it claims it has no direct involvement in the protests.
Opposition figures in Bahraini opposition leaders have also denied that Iran has played any role in their protest movement.
Iran’s President Mahmoud Ahmadinejad believes the U.S. is also involved in the Bahrain crisis, accusing Washington of promoting hostility between Iran and the Arab states.
America and its allies are trying to create an Iranian-Arab tension, they seek to sow discord among Shia and Sunnis... but their plan will fail, he recently said at Iran's annual Army Day parade.
Bahrain has been under martial law since mid-March, and more than 400 opposition activists have been detained y the authorities – at least four of which have died in custody under suspicious conditions.
Human rights activists believe they were tortured to death.