Iraq on Monday said it has put into practice a deal reached with Iran months ago to disarm Iranian-Kurdish rebel groups and close their military headquarters in its territory.
The neighbouring states signed an agreement in March to improve security co-operation, to curb the activities of militants based in the northern Iraqi-Kurdish region and to protect their borders.
Tehran warned Baghdad early on Monday that it would take action if it failed to uphold its end of the agreement by mid-September.
"Iraq has fulfilled its obligations of an agreement reached with Iran regarding armed groups in the north of the country," Hisham Al Rikaby, an adviser to Iraq's Prime Minister Mohammed Al Sudani, said in a statement.
"The security agreement with Iran includes preventing the infiltration of militants across the border, handing over wanted individuals, disarming and removing camps."
An official in Baghdad, speaking off the record, confirmed to The National that an agreement was made in early March between Iraq's National Security Adviser Qasim Al Araji and Iran's Supreme National Security Council secretary Ali Shamkhani on this matter.
"The two countries have agreed to control the border and work to disarm these groups and turn them into civilians," the Iraqi official said.
The groups involved include the Free Life Party of Kurdistan, known by its Kurdish acronym PJAK, and the Democratic Party of Iranian Kurdistan, which is based on the border between the neighbouring countries.
Iran's Foreign Ministry spokesman Nasser Kanaani said the deadline of mid-September would not be extended and while relations between the two countries were “entirely friendly and warm ... the presence of terrorists in the northern region of Iraq is an unpleasant stain on mutual ties".
"After this deadline, if Iraq fails to meet its commitments, the Iranian government will assume its responsibility in order to ensure the country's security," Mr Kanaani said.
Baghdad had agreed to evacuate the groups from their bases and "transfer them to camps provided by the Iraqi government" under the deal, he added.
No details where given of to where the militants will be taken.
The autonomous Kurdistan region of northern Iraq hosts camps and rear bases operated by several Iranian-Kurdish factions, which Iran accuses of serving western or Israeli interests.
The Iraqi official said Tehran often "threatens to strike their bases inside Iraq if they continue to be a threat and have given ultimatums in the past".
Iran has launched numerous attacks on Kurdish opposition groups exiled for decades in northern Iraq.
Tehran uses the words "separatist groups" to describe Kurdish factions opposed to the Iranian government and considers them "terrorist" organisations.
A Kurdish official told The National the regional government in the north did not "pose a direct threat" to anyone or allow any attacks from their territory towards Iran.
"These groups have not been designated terrorist organisations by Iraq or any other country worldwide, except for Iran," said the official. The US has designated the Kurdistan Worker's Party (PKK) – which is based in Turkey but also operates in Iraq – a terrorist group and by extension, PJAK, which it says is linked to the group.
"We believe that Kurdistan and Iraq should not be used as a base for attacks on neighbouring countries such as Iran or Turkey," the Kurdish official added.
"And we strongly oppose any inhumane treatment, attacks or threats against anyone that could cause harm to our neighbours or the stability of Iraq."
