The incident comes one day after an EU border patrol unit in the region said it came under gunfire, which Armenia blamed on Azerbaijan.
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“On August 16 at about 11:15 am, (0715 GMT) a reconnaissance and sabotage group of the Armenian army tried to infiltrate the territory of Azerbaijan,” Baku’s defense ministry said.
“Thanks to the vigilance of our units, supported by firepower, the Armenian soldiers’ provocation was foiled,” it said, adding that a wounded member of the Armenian group was captured.
The incident took place around the Istisu settlement in the Kyalbajar area, near the Armenian border, the ministry said.
“The other members of the reconnaissance and sabotage group were forced to retreat,” it added.
Armenia’s defense ministry said Baku’s version of events was “an absolute lie,” and that an Armenian reservist had strayed from a combat position on their own accord.
“A possible scenario and the circumstances of how a reservist could end up on the Azerbaijani side is being studied,” it said.
Tensions between Baku and Yerevan have escalated sharply in recent days, as both sides accuse the other of cross-border gunfire and violating agreements.
Most disagreement between the two centers around Nagorno-Karabakh — a small mountainous region recognized internationally as part of Azerbaijan but populated primarily by Armenians.
Baku and Yerevan have fought two wars over the region and have been unable to reach a lasting peace settlement, despite mediation efforts by the European Union, United States and Russia.