Japan on Saturday turned down China's call for compensation and an apology for the detention of a Chinese fishing boat captain whose arrest sparked a bitter row between the countries, Jiji Press reported.
"It is an utter accusation," an unnamed official from Japan's foreign ministry was quoted by Jiji as saying.
"We don't know on what ground they are saying so," the official said. "It cannot be accepted at all. We will reject it."
Beijing called for compensation and an apology for the "unlawful" detention as the Chinese trawlerman arrived home early Saturday after being released by Japanese prosecutors.
China's foreign ministry insisted the disputed islands at the centre of the diplomatic standoff were Beijing's "inherent territory", according to a report by a state-run news agency.
"Japan's detention, investigation or any form of judiciary measures for the Chinese trawler and fishermen are unlawful and invalid," the report said, adding: "The Japanese side must make apology and compensation for the incident."
The Chinese skipper was arrested on September 8 after his boat collided with two Japanese coastguard vessels near a disputed island chain, called Senkaku by Japan and Diaoyu by China.