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Foreign Secretary David Miliband is seeking urgent talks with Iran over a possible ‘show trial’ of British embassy employees.
Iran arrested nine local members of the British embassy last month and has charged one with "acting against national security”.
The 44-year-old-political analyst, named by his lawyer as Hossein Rassam, could now face trial in Tehran.
The Iranian government claims Britain is responsible for inciting a wave of protests against the disputed re-election of president Mahmoud Ahmadinejad.
In a sermon on Thursday Ayatollah Ahmad Jannati, head of Iran's powerful Guardian Council, claimed the British embassy staff had confessed to their involvement.
He said: "In these events, their embassy had a presence. Some people were arrested and well, inevitably, they will be put on trial,"
Foreign Secretary David Miliband said he is "deeply concerned" about the situation and is trying to contact his Iranian counterpart.
Mr Miliband added: "We have noted the remarks by Ayatollah Jannati suggesting that some of our local staff in Iran may face trial.
"We are urgently seeking clarification from the appropriate Iranian authorities.
“I intend to speak to Foreign Minister (Manouchehr) Mottaki.
“We are confident that our staff have not engaged in any improper or illegal behaviour. We remain deeply concerned about the two members of our staff who remain in detention in Iran."
Hossein Rassam and another embassy worker are still being held at Tehran's Evin Prison.
Rassam’s lawyer Abdolsamad Khorramshahi said: "Apparently he will be put on trial. We have prepared and submitted the defence documents and I have to see the judge next week."
Iran's Supreme Leader, Ayatollah Ali Khamenei, described Britain, as the "most evil" of its enemies at sermon last month calling for an end to the protests.
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