The report says, the incident happened after a clash among a number of prisoners convicted of financial crimes and theft in the prison in northwestern Tehran.
The prisoners reportedly set fire to a warehouse full of prison uniforms, which caused the blaze, but security forces intervened to restore calm.
Video footage showed plumes of smoke rising into the sky amid the sound of an alarm, but firefighters extinguished the flames within hours and rescued 70 inmates.
Tehran Prosecutor Ali Salehi denied the incident was related to the recent unrest and riots in Iran that saw the detention of many people involved in the mayhem.
Meanwhile, officials dismissed an earlier report by Iran’s Fars News Agency that several prisoners lost their lives after fleeing the scene and running towards the mine field in the northern part of the prison.