Egypt deports Qassem Hosseini, an Iranian envoy, who was arested on suspicion of spying in Egypt, state news agency Mena reported.
Hosseini of Iran was questioned on Saturday about passing intelligence reports to Iran, but was released a day later due to his diplomatic immunity.
Since the fall of President Hosni Mubarak in February, Egypt's ruling military council had indicated that it wants better relations with Iran.
The ties between the two countries have been frigid since Iran’s Islamic Revolution in 1979 and the Israeli-Egyptian peace agreement the same year.
Although Cairo and Tehran do not have proper diplomatic relations, both countries have a mission in each other’s capital.
The Iranian mission in Cairo had refused the reports of Hosseini's detention.
Hosseini, a secretary at Iran's special interests section, left Cairo on Monday in a flight bound for Dubai.