Kosovo police arrested three Germans Thursday on suspicion of bombing the Pristina headquarters of the EU special envoy to Kosovo Peter Feith on November 14. Media in both countries have said they work for German intelligence.
Deputy government spokesman Thomas Steg refused to comment directly on the arrests or the identity of the three Germans as the investigation is ongoing.
But he sharply rejected any notion of a link between Berlin and the blast.
"The idea that the government of the Federal Republic of Germany could be involved in terrorist attacks is absurd," Steg told a regular government news conference.
The explosion caused no casualties, but shattered office windows.
It came amid opposition by Kosovo Albanians to the planned deployment of an European Union civilian mission focused on police, judiciary and customs (EULEX) by early December under a deal reached between the UN and Serbia.
A Pristina court has ordered one month's detention for the three suspects. A spokesman for the German foreign intelligence agency refused to comment on the reports at the weekend that the group were members of its service. If charged and found guilty of terrorism, the trio could be sentenced to 20 years in prison.
Ethnic Albanian majority Kosovo in February unilaterally proclaimed independence from Serbia, which has rejected the move and considers it illegal.
However, more than 50 states, including the United States, Germany and most other EU members, have since recognised Kosovo's independence.