Washington denies Iran state media report saying prisoner swap agreed

FILE PHOTO: A staff member removes the Iranian flag from the stage after a group picture with foreign ministers and representatives of the U.S., Iran, China, Russia, Britain, Germany, France and the European Union during the Iran nuclear talks at the Vienna International Center in Vienna, Austria July 14, 2015. REUTERS/Carlos Barria/File Photo

DUBAI (Reuters) -The United States on Sunday denied a report by Iran's state television that the arch-foes had reached a prisoner swap deal in exchange for the release of $7 billion frozen Iranian oil funds under U.S. sanctions in other countries.

Iranian state television said on Sunday that Tehran would free four Americans accused of spying in exchange for four Iranians held in the United States and the release of the frozen Iranian funds.