Romania's President Traian Basescu accused Prime Minister Victor Ponta of working for the the country's secret services between 1997 and 2001.

"Victor Ponta has to acknowledge that he was an undercover employee of the Romanian secret service between 1997 and 2001," Basescu urged on Tuesday the head of state as quoted by the website Dnevnik.bg.

Ponta later described his allegations as "blatant lies", but this prompted a response from Basescu, who announced he is "ready to prove" his claim.

A government official said later on Tuesday that the President's words were obviously part of the election campaign.

Romanians are to elect their new President on November 2, with Prime Minister Ponta tipped as a favorite for the post.

Klaus Iohannis, an ethnic German who heads the Christian Liberals, his his main rival.

Basescu, who has been at odds with Ponta for several years, is at the end of his second consecutive mandate and is not allowed to run for election.

Affiliation to Romania's intelligence service became a top issue in the country after Teodor Mele?canu stepped down as intelligence chief in September to place his bid for the Presidency.