The US State Department confirmed on Thursday its embassy in Venezuela had received a letter outlining accusations of espionage against U.S. naval attache Captain John Correa, but denied the spy charges.

"None of the attaches was or is engaged in inappropriate activities," State Department spokeswoman Janelle Hironimus said.

Hironimus said Washington would react through diplomatic channels, but did not offer any more details.

Venezuelan President Hugo Chavez announced on Thursday he was expelling a U.S. Embassy military official who authorities accuse of spying with a group of Venezuelan officers.

Relations between Venezuela and the United States have been deteriorating over recent years, and Caracas accused Washington of supporting an abortive coup to overthrow Chavez in April 2002.

However, trade between the two countries continues to grow despite political rows. In 2005, the U.S.-Venezuelan trade reached 39 billion U.S. dollars, up 35 percent over a year earlier.

Source: Xinhua