Azerbaijan says its forces have "suppressed" the enemy following the incident in the Kalbajar area on the border.
Baku dismisses Yerevan's accusations that it was laying "siege" to a lake on their border, calling such claims "provocative."
Azerbaijan’s defence ministry reports an illegal group of Armenian fighters carried out the ambush in Aghdam, adjacent to the disputed Nagorno-Karabakh region, which also fell to Baku before the November peace deal.
The exchange was facilitated by Russian peacekeepers who have been deployed to Nagorno-Karabakh for five years under the peace deal.
Meanwhile, Turkey said the agreement to end the war over Karabakh will have a positive impact on regional stability.
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