Authorities in Azerbaijan have thwarted a plot by Hizbullah to bomb the Israeli embassy in Baku, the Kuwaiti newspaper Al-Watan reported on Monday.

The paper quoted well-informed Russian sources as saying Azerbaijan's security apparatus thwarted Hizbullah's alleged plot which was aimed at avenging the killing of the Shi'ite terror group's military commander Imad Mughniyeh in a car bombing in Damascus, in February 2008.

Hizbullah has accused Israel of involvement in Mughniyeh's killing but Israel has denied the charge.

After Mughniyeh's death, Israeli embassies worldwide went on alert and Israeli authorities advised Jewish institutions across the globe to be vigilant for revenge attacks.

The same sources said that Egypt uncovered a Hizbullah cell that was preparing an attack on Israeli targets in Sinai. The ring leader was reportedly a Lebanese man, and the rest of the cell's members were Arabs from Israel.

The London Times reported earlier this week that at “least one attack was foiled in Azerbaijan weeks after Mughniyeh’s assassination when Azeri Intelligence discovered a plot to blow up the Israeli Embassy there.” In addition, Egypt recently broke up a Hizbullah cell in the Sinai “headed by a Lebanese citizen, Sami Shehab, which included Palestinians and was planning to attack Israeli targets.”

Al-Watan said Baku recently announced that it had thwarted a large-scale plot by an extremist group aimed at targeting foreign embassies and institutions, without detailing which country was being threatened.

According to the paper, Azeri authorities said they arrested the suspected terrorists and seized weapons from them. 

The Mossad, Israel's overseas intelligence organization, responded to a query regarding the reports by saying that it “does not comment on information regarding its activities or activities that are ascribed to it.”