(Adds ISNA saying two bandits also killed, details)

TEHRAN, Sept 5 (Reuters) - Seven Iranian policemen were killed in an overnight clash with bandits in Kermanshah province bordering Iraq, the ISNA news agency reported on Wednesday.

Two bandits and a passenger in a passing car were also killed in the fighting, ISNA said.

It said police had not yet identified the gunmen, but quoted one official as saying they were "definitely related to anti-revolutionary groups."

Kermanshah, which has a large Iranian Kurdish population, lies south of the province of Kurdistan, where there have been occasional clashes with separatist guerrillas. Smugglers of fuel and other contraband operate in the area.

Earlier this week, an Iranian news agency said a senior official had denied allegations that Iran had been shelling Kurdish areas in an area of Iraq bordering northwestern Iran.

Iraqi officials accused Iran last month of shelling Kurdish villages in Iraq's northeast, a move Iraqi Foreign Minister Hoshiyar Zebari said threatened ties with Iran.

Cross-border clashes occasionally occur as Iran and Turkey battle Kurdish separatist rebels operating from bases in Iraq's mountainous northeastern region of Kurdistan.

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